Quick Commerce Revolutionizes India's Retail Landscape

Quick commerce is transforming India's retail market from a luxury service to a structural staple, significantly contributing to projected growth. Expected to reach a GMV of USD 60 billion by FY31, this sector is diversifying beyond groceries, enhancing market share and margins, spurred by rising consumer engagement.

Quick commerce is redefining the urban retail landscape in India, moving from a luxurious add-on to a core component of the market, according to a report by Anand Rathi Research. This evolution is set to underpin significant growth in the retail sector over the next several years.

The report highlights that India's retail market, currently valued at approximately USD 1.07 trillion, is projected to achieve a compound annual growth rate (CAGR) of about 8-10% from FY26 to FY31, eventually reaching USD 1.5-1.6 trillion. Within this broader market, quick commerce stands out as a pivotal growth catalyst.

The gross merchandise value (GMV) of quick commerce, as cited in the report, is expected to soar to USD 60 billion by FY31, up from USD 11.3 billion in FY26 and USD 1.6 billion in FY23. This surge represents a CAGR of approximately 23.3% during FY26-31, accounting for about 9-11% of the retail sector's incremental growth during this time frame.

Anand Rathi Research suggests that the opportunity for expansion extends beyond the grocery sector. By FY31, non-grocery categories are anticipated to constitute around 39-44% of quick commerce's share, up from 29% in FY26. This shift offers prospects for increased wallet share and improved margins due to stronger unit economics.

The growth is supported by a booming customer base and escalating order volumes nationwide. The number of monthly transacting users (MTUs) is forecasted to jump to 105-115 million by FY31, from merely 5.6 million in FY23 and 36-38 million in FY26. This progression is driven by heightening platform relevance, enhanced consumer experience, and quick commerce's mainstream adoption across India.