Will Flipkart Minutes be able to make a mark in India's quick commerce segment?
India’s quick commerce sector has seen an explosive rise from a niche play into a $3.5 billion market in just over four years. By 2030, the industry is projected to touch $40 billion, as per Datum Intelligence.
At the forefront of this boom are Blinkit, Zepto, and Swiggy Instamart, each aggressively expanding their reach. But the battle is far from over. Newer entrants such as BBNow, Amazon’s Tez, and Flipkart Minutes—the latest from the Walmart-backed e-commerce giant—are also vying for a foothold in this fast-evolving landscape. This is Flipkart’s third attempt at grocery delivery. While it has built a robust foundation this time, sustaining in the high-stakes quick commerce arena remains a formidable challenge.
For now, Flipkart Minutes, launched in August 2024 in Bengaluru, has expanded to Mumbai, Delhi, Lucknow, Kolkata, and Ahmedabad, with around 160 dark stores. Sources say the company aims to scale up this network to 500 by March 2025.
“Flipkart doesn’t see major supply chain challenges as it has already been operating in grocery,” says a source familiar with the company’s plans. But why did it fail twice earlier? Aakash Agrawal, Head, Digital & New Age Businesses at Anand Rathi Investment Banking, says quick commerce is a matter of timing. “Food delivery took a long time to be streamlined. Many players attempted grocery delivery since 2013. These models faced several challenges, but the issues were eventually addressed.”
“For Flipkart Minutes, market perception played a key role,” says Rathi. Flipkart is primarily known for e-commerce, whereas companies launching separate quick commerce apps aimed to establish a distinct market positioning. Now, as Flipkart goes all in with Flipkart Minutes, it benefits from its robust supply chain and warehousing. “Flipkart has the financial muscle. While grocery does not demand heavy cash burn or deep discounting, the capital needed for geographic and category expansion wouldn’t be a constraint for large firms like Flipkart,” says Rathi.
However, with Amazon ramping up its quick commerce play with Tez, the competition is set to intensify. Another hurdle for Flipkart Minutes could be its leadership. Reports suggest that Kabeer Biswas, co-founder and CEO of Dunzo, was set to take charge of the business. However, with Dunzo facing financial distress and being dragged to the National Company Law Tribunal over unpaid dues, Biswas’s potential involvement remains unclear.
The vertical is currently being overseen by Hemant Badri, Group SVP & Head of Supply Chain, Customer Experience, and ReCommerce Business; the company is yet to announce a dedicated head of the vertical. “Talent is abundant at Flipkart. Ultimately, it all comes down to how nimble Flipkart can be.” Queries to Flipkart and Kabeer Biswas remained unanswered.
Meanwhile, competition is intensifying. Blinkit and Swiggy Instamart continue to burn cash. Swiggy’s Q3 FY25 results indicate that Instamart’s contribution margin dipped to -4.6% from -1.9% in the previous quarter. The adjusted EBITDA was - Rs 490 cr. Blinkit saw over 15% QoQ decline in adjusted EBITDA at - Rs 103 crore due to rapid expansion of its dark store network.
Yet, consolidation may not be far off. An investor draws parallels with the early days of e-commerce in India. “Back in 2013, many start-ups entered the e-commerce space, but only a handful survived. We now see only three-four prominent players. Quick commerce will likely follow a similar trajectory,” he says.
For Flipkart Minutes, the road ahead is both promising and challenging. While its capital muscle and established supply chain offer an advantage, the perception of the brand, absence of a clear leadership structure and aggressive expansion by rivals mean the coming months will be crucial to its success in India’s quick commerce battlefield.
@PalakAgarwal64
