Quick commerce has created a buzz across sectors like ecommerce and fintech. After Amazon and Flipkart, fintech major PhonePe is testing its quick delivery service in parts of Delhi-NCR, Bengaluru, Pune, Hyderabad, Varanasi, and Mumbai, according to an Inc42 report. The platform aims to deliver groceries and other essential products in 10-20 minutes.
The report mentioned that Pincode doesn’t follow the dark store model like other market players. It has rather created a marketplace, where neigbourhood kirana stores and buyers will come together to sell essentials items.
Pincode was initially launched in Bengaluru in April 2023 to sell groceries, food and technology products, and apparel on the Open Network for Digital Commerce (ONDC) platform. However, it has now shifted away from the ONDC network and built its own marketplace.
India's Quick Commerce Boom
The latest companies to have joined the quick commerce market are Amazon (will come with Tez by December end), Flipkart (Minutes), Myntra (M-Now), and Nykaa. Some of the prominent players already present in the segment include Zepto, Blinkit, and Instagram.
Quick commerce platform Zepto recently raised $300 million in its fundraise recently. This was the company’s third fundraise in the last six months. The last funding round that happened in November was reportedly led by Motilal Oswal’s private wealth division, along with participation from HNIS and family offices.
Additionally, recently, the shareholders of food delivery platform Zomato raised Rs 8,500 crore via qualified institutional placement (QIP). In simple terms, a company generates funds through a QIP by selling shares or other securities to qualified institutional buyers (QIBs).
Quick Commerce Threat for Kiranas
As the grocery and kitchen segments are the worst hit by the quick commerce surge, players in these categories are experimenting with taking orders and scheduling home delivery on WhatsApp. On the other hand, traditional mom and pop stores are evolving to stay relevant in the age of quick commerce by blending technology with personalised service.
Beyond integrating tech, these stores are building on long-standing relationships with their customers offering convenience like credit accounts or khata that digital platform cannot match. This is as per an Outlook Business report.
Store owners are also strategically prioritising their most valuable customers, those who rely upon them for monthly essentials by tailoring services to their needs. This mix of personal connection and adaptability is helping them hold their ground in a rapidly changing retail landscape.
