The gross order value of the Indian quick commerce (Q-commerce) sector is expected to increase rapidly, almost tripling from an anticipated Rs 64,000 crore in FY25 to about Rs 2 lakh crore by FY28, a report released on Thursday said.
A report by CareEdge Advisory, a subsidiary of CareEdge Ratings, estimates that the Q-commerce market in India reached approximately Rs 64,000 crore in FY25, growing at a startling CAGR of 142% during FY22-FY25 due to a lower base, hyperlocal infrastructure, and changing consumer preferences.
Growth is still robust, but the emphasis is now on restoring profitability and operational effectiveness rather than quick development. The next stage of India’s Q-commerce environment would probably be characterized by tech-led innovations and more penetration in Tier 2 and Tier 3 cities, according to Tanvi Shah, Senior Director and Head, CareEdge Advisory and Research.
Compared to the government, the Q-commerce market’s fee-based revenue has increased at a far quicker rate.
With a noteworthy compound annual growth rate (CAGR) of 26–27 percent from FY25 to FY28, the fee-based revenue, which was Rs 450 crore in FY22, increased to an anticipated Rs 10,500 crore in FY25 and is expected to reach Rs 34,500 crore by FY28.
According to the research, this dramatic rise is the consequence of major companies raising platform fees, which raises revenue realization and significantly raises GOV overall.
Even if the Q-commerce sector only accounts for about 1% of India’s enormous grocery market, it is precisely what makes it so fascinating.
According to Amir Shaikh, Assistant Director, CareEdge Advisory and Research, “Q-commerce is set to grow rapidly as more consumers embrace the speed and convenience it offers, even if the broader grocery market growth remains flat.”
The quick uptake of e-commerce and Q-commerce platforms has been made possible by this digital backbone. India is the second-largest e-retail user base in the world, with over 270 million online customers in 2024.
The e-commerce market is anticipated to sustain a compound annual growth rate (CAGR) of 21.5% through 2030, having grown 23.8% year over year in 2024.
Growing consumer spending power and increased digital penetration are major factors driving India’s Q-commerce boom.
With 806 million internet users as of early 2025—a 6.5% YoY increase—and more than 1.12 billion mobile connections, the nation is expected to have more than 900 million users by the end of the year.