further Ras but let's move on on quick Commerce it's the latest buzzword in the world of retail uh the meteoric rise of apps like blinket Z zepto instamart has stocked immense interest in this space the in the first part of the series think it by it CNBC TV8 Shilpa Rani Peta has reported that while the rapid growth has taken many including investors by surprise scalability remains a key challenge listen it Indian consum consumers are impatient they want everything from groceries to personal care products to home appliances in their hands as soon as possible and they
want to shop without leaving the comfort of their homes it's this love for instant delies and couch shopping that has fueled the meteoric growth of the quick Commerce industry in India in fi 24 blinket clocked 20.3 CR orders armed with 526 dark stores or product depos it saw gross order values growing 93% to 12496 CR rupees swiggy instamart with its 600 dark stores clock 17.6 CR orders with go growing 58% to 8,100 CR rupees zepto meanwhile is quickly playing catchup sales crossed 5,000 CR rupees in fi 24 and the company plans to scale its dark
stock count to 700 by 2025 ilara Securities estimates the industry is currently worth 3.5 to4 billion and is slated to grow at 25 to 30% over the next 5 years at least five times faster than e-commerce I think it has taken a lot of people by surprise uh including me I think the promise has been kept by the players when the gmv rates are very very good the brands are supporting the quick Commerce players simply because they now see customers uh investors obviously have believed in uh the potential of quick Commerce in India and once
they've seen very good traction and very good execution by the founders and the team uh they have not stopped shy of uh pouring more money no surprise then that incumbent e grossers like big basket who once viewed unit economics of QC Commerce unviable have changed their mind even e-commerce players like Flipkart Amazon and India's largest retailer Reliance retail now want a piece of this spy experts say the growth prospects endorse this interest but add that growing average order value and scalability of operations will be key if you have an average order value of 500 to
550 and if you do uh roughly around 2,000 orders per day uh quick Commerce dark store would largely be at a break even point so that is the math there and I think uh definitely the business is quite sustainable because I think if you look at some of the mature stores I think uh they are already making you know healthy ABA margins and if 2,000 orders if you have if they are doing a break even on that point of time if these orders are you know maybe 4,000 5,000 then definitely you'll get healthy ABA margins
as well for consumers the big draw is not just ordering from the comfort of their homes but that Q Commerce platforms have been consistently adding to the range of products available under one app experts agree that it is this strategy along with entry into new markets that will ultimately Drive business growth we launched nask last month right nask is not known to be like anywhere close to a metro in terms of a market the stores that we launched there have hit 1,000 orders per day in 6 weeks it's the fastest that we've ever been able
to achieve that when we go into the tier 2 tier three markets customers come and tell us that hey I actually couldn't find this selection anywhere else right or I couldn't find this you know quality control anywhere else and so we think we have an even stronger value prop on those markets one of the things that the quick Commerce business needs uh because of of the slightly lower average order values is basically high density right and that's what we need to do and so as you go to smaller towns it gets thinner and that can
impact profitability so we'll be careful in terms of choosing towns but as more players enter the freay a ShakeOut is inevitable consumers may be spoiled for Choice value and Service as more players enter the market experts say 5 years down the line there may not be space for all of them this will lead to the less Nimble and those struggling to achieve scale quickly cracking under pressure experts say this will lead to a Spate of consolidation that could leave with the quick Commerce Market with just 3 to five players in Mumbai Shilpa ranip
