New Delhi [India], July 11 (ANI): India's Quick Commerce (Q-commerce) market is estimated to have reached around Rs 64,000 crore in FY25, growing at a staggering Compound Annual Growth Rate (CAGR) of 142 per cent during FY22-FY25, said market analytics firm CareEdge in its latest report.

According to the report, the Gross Order Value of the quick commerce market will nearly triple from an estimated Rs 64,000 crore in FY25 to around Rs 2 lakh crore by FY28, registering exponential growth.

Quick commerce (or q-commerce) is a specialised form of e-commerce that focuses on delivering goods to customers within a very short timeframe, typically within 10-30 minutes.

According to the report, the sector is expected to maintain strong double-digit growth in the coming years. The growth will be led by the rising adoption and expansion of services in the Tier II & III cities, enhanced delivery networks, and a shift in consumer preference towards instant fulfilment.

Elaborating on the factors behind the growth, the report added that a wider geographic footprint, regional penetration, a shift in consumer behaviour towards convenience and speed of delivery, an increase in digitisation, and lower base are helping the industry to grow.

'Moreover, structural trends such as growing urbanisation, changing consumer lifestyles, and increasing disposable income favour quick app-based shopping experiences, further fueling industry growth,' the report added.

Major FMCG brands are also embracing Q-commerce through platform-specific SKUs, premium offerings, and marketing partnerships, thereby expanding product variety and boosting average order values. Simultaneously, companies are investing heavily in dark stores, tech infrastructure, and delivery optimisation, laying the groundwork for efficient and scalable operations.

'Together, these factors are supporting the Q-commerce industry to become one of the key pillars in India's evolving retail landscape,' the report added.

The observation reveals that the Q-commerce market revenue generated through fees has grown at a significantly faster pace than the GOV.

The fee-based revenue of Q-Commerce companies, which stood at Rs 450 crore in FY22, has reached an estimated Rs 10,500 crore in FY25 and is further projected to reach Rs 34,500 crore by FY28, representing a significant CAGR of 26-27 per cent from FY25 to FY28, the report added.

'This sharp increase is due to increased platform fees by major players, resulting in higher revenue realisation and a substantial increase in overall GOV,' the report stated.

Sharing more insights on the improvement of GOV, the report stated that a key driver behind this trend is the improved monetisation take rate of leading platforms.

The fee rate across the Q-commerce sector has shown a sharp upward trend between FY22 and FY25, driven by improved monetisation strategies.

For instance, leading players reportedly increased rates from around 7-9 per cent in FY22 to 14-18 per cent by FY25, effectively doubling in three years. These enhanced monetisation strategies, driven by convenience fees and delivery charges, have significantly contributed to the robust growth in fees revenue of these companies.

'As platforms optimise their fee structures and scale up their operations, fee-based revenue is expected to remain a major growth engine for the sector,' the report added. (ANI)