Quick commerce platforms focus shifts to revive profitability than aggressive expansion: Report
India's quick commerce (Q-commerce) segment is moving away from its earlier focus on hypergrowth and shifting towards reviving profitability and improving operational efficiency, according to a report by CareEdge Ratings.
ANI
Jul 21, 2025 12:21 IST
New Delhi [India], July 21 (ANI): India's quick commerce (Q-commerce) segment is moving away from its earlier focus on hypergrowth and shifting towards reviving profitability and improving operational efficiency, according to a report by CareEdge Ratings.
The report highlighted that platforms are now increasingly leveraging advertising, subscription models, private labels, and tech-led inventory optimisation to ensure sustainable and long-term growth.
It stated "the next wave of optimisation, through intelligent zoning, advanced demand forecasting, and warehouse automation, is expected to revive the profitability scenario".
The report also pointed out that the Q-commerce market in India is estimated to have touched around Rs 64,000 crore in FY25, growing at an impressive CAGR of 142 per cent between FY22 and FY25.
This rapid growth has been largely driven by changing consumer preferences, improvements in hyperlocal infrastructure, and the advantage of a low base.
While growth remains strong, the report suggests that the next phase for the sector will focus more on profitability rather than aggressive expansion.
The report also points out that the real operational strength of the Q-commerce model lies in dark stores or micro-warehouses, which enable ultra-fast deliveries.
The number of dark stores rose sharply from 1,800 in FY24 to 3,072 in FY25, showing a 70.7 per cent year-on-year increase. At the same time, the average revenue per store also went up by 25.1 per cent, suggesting better unit economics and improved efficiency in inventory and space utilisation.
Most Q-commerce players already use technologies like real-time inventory sync, AI-based stock replenishment, and zone-specific SKU planning.
As the sector continues to expand, further optimisation is expected through intelligent zoning, advanced demand forecasting, and automation in warehouses. These steps are expected to boost profitability and strengthen the logistics backbone of the sector.
The report also highlighted that strong double-digit growth is likely to continue in the coming years, supported by increased adoption in Tier II and Tier III cities, better delivery networks, and a growing consumer shift towards instant order fulfilment.
Overall, the Q-commerce industry in India appears to be entering a new phase of growth, where profitability and operational efficiency will take centre stage, backed by strong demand and innovative technology-led solutions. (ANI)
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