The landscape of instant gratification in India is set for a seismic shift. The quick commerce sector, which saw meteoric growth in 2025, is bracing for an even more challenging and competitive year in 2026. While platforms like Blinkit, Instamart, and Zepto have successfully turned rapid delivery into a consumer habit, the path ahead demands a sharp pivot towards sustainable, profitable models amidst the entry of deep-pocketed giants.
The Cash Burn Conundrum and the Funding Firepower
The past year witnessed an explosion in the rapid delivery segment. Companies aggressively expanded beyond metropolitan hubs into tier 2 and 3 cities, proliferated their dark store networks, and vastly diversified their catalogues beyond groceries to include lifestyle products and high-end electronics. This land-grab strategy, however, came at a significant cost, with cash burn intensifying.
According to a report by Care Edge, Indians ordered goods worth a staggering ₹64,000 crore from quick-commerce platforms in FY25, more than doubling from the previous fiscal. Platform revenues from fees jumped to approximately ₹10,500 crore in FY25 from a mere ₹450 crore in FY22. Yet, losses widened concurrently. For instance, Blinkit's cash burn peaked as it established 272 new dark stores in the July-September quarter, spending about ₹1,038 crore. Similarly, Swiggy's net loss ballooned to ₹1,092 crore, heavily impacted by its investment in Instamart.
This aggressive expansion has been fueled by substantial fresh capital. Swiggy raised ₹10,000 crore via a QIP in December 2025, while Zepto secured $450 million in October 2025, achieving a $7 billion valuation. Eternal continues to back Blinkit. This war chest sets the stage for the next phase of battle, where capital allocation efficiency will be paramount.
2026: The Year of Intentional Growth and Market Maturation
Industry experts predict that 2026 will be a defining year, moving from hypergrowth to thoughtful consolidation. Madhav Kasturia, CEO of Zippee, foresees sharper credit terms with brands, stricter expiry controls, and consolidated city hubs. "Capital sets the pace, but execution still decides who can convert density into contribution profit every single week," he notes.
A significant positive trend is the evolution of consumer behaviour. Satish Meena of Datum Intelligence points out that quick commerce is transitioning from a last-minute convenience to a tool for weekly household planning. This predictability allows platforms to optimize assortments and delivery schedules. The focus is now shifting to high-margin categories and private labels.
"Private labels have become the real engine. Chronic medications, consumables, and essentials fit the model perfectly," Kasturia adds, highlighting the next major growth line aimed at higher repeat rates and average order values (AOV). The groundwork laid in 2025 for non-grocery categories is expected to yield deeper penetration in 2026.
The Giants Awaken: Amazon and Flipkart Enter the Fray
The sector's explosive growth has inevitably attracted the country's e-commerce behemoths, escalating the competition to a new level. Flipkart rolled out its instant delivery service, 'Minutes,' in late 2024, with expansion across major cities in 2025. Not to be left behind, Amazon launched 'Now' in select cities in June 2025.
According to Subramanian M.K., Director of Velocity, these giants will focus on broadening product ranges, diversifying categories, and improving delivery speed and reliability in 2026. Their entry forces all players to strengthen owned channels, improve demand forecasting, and partner with logistics firms enabling distributed warehousing.
While Flipkart and Amazon boast wider product assortments and strong customer hold, Meena cautions that their success hinges on mastering the core quick commerce proposition: delivery within minutes, a feat the incumbent platforms have already refined.
The sector is already a powerhouse, accounting for over two-thirds of all online grocery orders and growing its total market share to $6-7 billion in 2025 from 2022, as per Bain & Co. Karan Taurani of Elara Securities notes that quick commerce is fuelling India's overall double-digit e-commerce growth, outperforming global markets. As the dust settles from the initial expansion rush, 2026 will test which players can build a steadier, profitable foundation in this fiercely competitive and fast-evolving market.
