Zomato’s Blinkit leads the quick commerce market in India, having cornered as much as 46 percent of the market share by GMV in the quarter that ended in December.

Fueled by the sectors’ capability to cater the diverse requirements of urban consumers in the quest of convenient, unplanned and small ticket businesses, the quick commerce market of Indi has registered a stunning 10-fold growth between the years of 2021 and 2023.

On the other hand, according to JM Financial, regardless the robust growth, the market of quick commerce has captured 7 percent of the possible market, with an estimated TAM- Total addressable market at $45 billion beating the food delivery.

According to the News Analysis, in India, Blinkit led by Zomato ranks top in the quick commerce market in India by capturing as much as 46 percent of the market share by the GMV- Gross Merchandise Value in the recent quarter ended in December.

Instamart led by Swiggy stands next to zomato with a 27 percent share and the later joined player in the game, Zepto has rapidly earned the significant place in the ground by securing 7 percent share. Pioneered the model of quick commerce in India, Dunzo backed by Reliance has lost its entire market share virtually.

On this regard, the brokerage firm JM Financial stated in its recent writings, “With more than 10 active players, the space was very competitive a couple of years back”. It also added, “It appeared that an intense phase of multi- year cash-burn would soon follow. However, contrary to expectations, several players including some well-funded ones folded early in their endeavour. While some faced funding challenges, a few others were affected by structural issues such as lack of product market fit, inability to solve the hyper local complexity, inability to build a robust end-to-end supply chain and failure to create a strong brand recall.”

Despite that the fact of the ease & accessibility by the quick commerce sector is indisputable; the profitability of the sectors remains a worry for the investors. Acquired by Zomato in 2022, Blinkit fosters to reach EBITDA break-even by the upcoming first quarter of the financial years 2025.

Meanwhile, Zepto has set its targets on EBITDA profitability in 2024. Also Swiggy Instamart concentrating on productivity & prosperity with the parent company signifying that the maximum investments in the businesses are in their back.

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