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Time of India
11-06-2025
- Business
- Time of India
10-minute delivery boom fuels hyperlocal warehousing surge in urban and tier-2 cities
HighlightsThe demand for hyperlocal warehouses in India is outpacing supply, driven by quick-commerce platforms such as Blinkit, Zepto, Swiggy Instamart, and BigBasket Now aiming to deliver products within 10-15 minutes. As quick-commerce companies expand, they are repurposing underutilized spaces like old neighborhood shops and defunct service apartments into efficient micro-fulfillment centers, which are essential for meeting the growing consumer demand for rapid delivery. Industry experts predict that India will require over 12 to 15 million square feet of small-format warehousing space in the next three years to support the projected growth of the quick-commerce sector, which is expected to reach $5.5 billion by 2025. The booming quick-commerce (Q-commerce) segment in India is fueling a rapid rise in demand for small, hyperlocal warehouses outstripping the supply. As platforms like Blinkit , Zepto , Swiggy Instamart , and BigBasket Now race to fulfill deliveries within 10-15 minutes, last-mile fulfillment centers—tucked into basements, small plots, and underutilized urban properties—are becoming critical infrastructure across metro cities and Tier-2 locations. According to experts, the demand is three times that of the new wave of hyperlocal warehouses—often no larger than 2,000 to 8,000 sq ft— located within dense residential neighborhoods. Additionally, underutilized spaces – such as old neighbourhood shops, defunct service apartments, and ground-floor office spaces – are being converted into highly efficient and profitable micro-fulfilment hubs. This 'The strategic repurposing allows the establishment of a dense network of hyper-local fulfilment centres, bringing inventory closer to the customer than ever before. This model not only optimizes delivery times to within minutes but also significantly reduces last-mile logistics costs, making quick commerce economically viable and scalable in densely populated urban environments,' said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE The business model behind quick delivery is based on rapid inventory turnover and proximity to the customer base. As a result, companies are leasing multiple, small-format spaces instead of large centralized hubs. Each warehouse typically serves a radius of 2-3 km, enabling delivery within 10-12 micro-fulfillment centers stock fast-moving consumer goods (FMCG), fresh produce, snacks, and beverages that can be delivered within minutes of order placement. Additionally lack of financial visibility for landlord and large corporates are making it difficult to attract a complaint property. According to J P Morgan, Zomato-owned Blinkit and Swiggy Instamart are accelerating the pace of dark store network expansion, while the IPO-bound Zepto is slowing down. It had earlier said in 2024 that the total count of dark stores will reach 700 March 2025. A recent research note from a global brokerage firm said that both Blinkit and Instamart added over 150 dark stores during the January-February period, while Zepto experienced a slowdown in its dark store additions. The brokerage estimates that Blinkit currently operates the largest dark store network in the country, with approximately 1,229 stores, surpassing Zepto, which has 1,147 dark stores. Additionally, these companies have reportedly reduced the average delivery time to under 10 minutes in over 70% of their active zones. 'Q-commerce companies are not just tenants anymore; they are now driving demand and influencing micro-markets,' says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India . 'We are witnessing increased lease activity in areas like Andheri (Mumbai), Koramangala (Bengaluru), and Kukatpally (Hyderabad), where even ground-floor retail and idle parking spaces are being converted into dark stores.' While metros remain the hotbeds of Q-commerce activity, the next wave of growth is firmly taking root in Tier-2 cities such as Jaipur, Coimbatore, Nagpur, Lucknow, and Surat. Improved digital penetration, rising disposable income, and consumer demand for convenience are driving expansion beyond the traditional top six cities. Coimbatore and Indore are seeing a spike in short-term leases for 1,500–3,000 sq ft units. These aren't just warehousing deals—they are hybrid agreements with retail landlords looking for steady rentals in high-footfall areas. Local developers and real estate investors in these cities are increasingly converting underutilized properties into rentable dark store formats. In Jaipur, for example, a former banquet hall near Mansarovar was recently repurposed into a 24/7 fulfillment hub for a grocery delivery firm, generating a 20% higher rental yield than its previous use. As India's first integrated supply chain infrastructure platform, IndoSpace has set up its first such format–INLOGIS Chembur—a 150,000 sq. ft in-city warehousing hub in Mumbai. IndoSpace is scaling this model across major metros to unlock proximity, reduce delivery times, support hyperlocal fulfilment, and power the future of last-mile logistics. ' 'Designed for high-efficiency delivery with features like cargo elevators, EV charging, and solar panels, it caters to the surging quick commerce market projected to triple by 2027. With unit sizes from 5,000 to 35,000 sq. ft, INLOGIS enables rapid service to over half of Mumbai', said a source. The rise of hyperlocal warehousing is also subtly impacting rental dynamics in urban pockets. Rents for ground-floor spaces in residential-commercial mixed-use zones have jumped by 10-18% in key micromarkets since 2023, according to Knight Frank. 'We believe the future of urban logistics lies in Grade-A in-city warehousing and micro fulfillment centers,' said Vamsi from Sumadhura. 'With the Q-commerce boom driving demand for over over 10 dark stores per cluster in some metros, there's a clear need for optimized, compliant, and scalable urban logistics hubs. We are seeing strong traction for shared 3PL platforms, and our goal is to build flexible, multi-tenant spaces that enable this shift. By embedding hygiene, safety, and automation-readiness from day one, we aim to offer long-term value to operators. Our investment case shows these hubs can deliver returns on par with top-tier commercial assets,' Vamshi Karangula Vice President Sumadhura Group According to experts, demand for hyperlocal warehouses is poised to grow in tandem with the Q-commerce sector, which is projected to reach $5.5 billion by 2025, according to RedSeer Consulting. Industry estimates suggest that India may require over 12–15 million sq ft of small-format warehousing space in the next three years to meet delivery demand from urban and Tier-2 consumers. For developers, especially in land-constrained metros, this opens up a new monetization avenue. Even older commercial buildings, retail stores, and standalone houses can be repositioned as revenue-generating micro-hubs. 'Dark stores thrive on speed and efficiency, typically holding just 2–3 days of inventory to meet rapid order turnover. Their ability to pay higher rentals is driven by location—delivery time and household reach matter more than size. With limited organized supply, many are set up in repurposed residential, retail, or workshop spaces across cities,' said Chandranath Dey , India Head - Operation & Business Development, Logistics & Industrial, JLL. As the 10-minute delivery race heats up, India's real estate sector is not just enabling the change—it's being transformed by it. Quick-commerce platforms initially focused on groceries, fresh produce, and essentials are now diversifying their offerings to include electronics and personal care items, among other products."
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Business Standard
10-06-2025
- Business
- Business Standard
BigBasket to launch 10-minute food delivery across India by March 2026
BigBasket, the grocery delivery service backed by Tata Group, plans to launch 10-minute food delivery across India by the end of the financial year 2026. 'One of the advantages we have is, being a part of Tata Group, you have enough internal capital available,' co-founder Vipul Parekh told Reuters. He also confirmed that the company aims to go public within the next 18–24 months. The move comes as India's quick-commerce market, valued at $7.1 billion, sees heightened competition with the rise of new rapid delivery platforms. Targeting quick-commerce rivals BigBasket intends to challenge existing players like Swiggy's Instamart, Blinkit's Bistro, Magicpin's MagicNow, and Zepto Cafe, which offer instant delivery of items such as coffee and ready-to-eat snacks. To support the expansion, BigBasket plans to grow its dark store network from the current 700 to between 1,000 and 1,200 by the end of 2025. A pilot programme for the food delivery service began a month ago in Bengaluru and is expected to extend to 40 dark stores by the end of July. Rising competition in quick food delivery Zepto Cafe was launched in April 2022 with a focus on coffee and ready-to-eat food. Blinkit Bistro, developed by Zomato-owned Blinkit, was released on the Google Play Store on 6 December 2024 and began piloting its 10-minute food delivery service in Gurugram in January 2025. Swiggy's quick food delivery platform, Bolt, expanded to over 500 cities by May 2025 after its launch in October 2024. Its standalone app SNACC, which promises 15-minute delivery, was launched in parts of Bengaluru on 7 January 2025. Zomato Quick, another 10-minute delivery service, was relaunched in January 2025 following the shutdown of Zomato Instant, an earlier pilot from April 2022, which was discontinued due to profitability concerns. Customer strategy and menu BigBasket is targeting existing users of food delivery apps like Zomato and Swiggy, while also aiming to attract new customers, Parekh said. Currently, 5–10 per cent of BigBasket users combine quick-food items with their regular grocery orders — a figure expected to rise. The menu will include items from Tata Group brands such as Starbucks and Qmin. The service will rely on dark stores — strategically located urban warehouses — to quickly process and dispatch online orders.
Time of India
10-06-2025
- Business
- Time of India
10-minute delivery boom fuels hyperlocal warehousing surge in urban and tier-2 India
The booming quick-commerce (Q-commerce) segment in India is fueling a rapid rise in demand for small, hyperlocal warehouses outstripping the supply. As platforms like Blinkit , Zepto , Swiggy Instamart , and BigBasket Now race to fulfill deliveries within 10-15 minutes, last-mile fulfillment centers—tucked into basements, small plots, and underutilized urban properties—are becoming critical infrastructure across metro cities and Tier-2 locations. According to experts, the demand is three times that of the new wave of hyperlocal warehouses—often no larger than 2,000 to 8,000 sq ft— located within dense residential neighborhoods. Additionally, underutilized spaces – such as old neighbourhood shops, defunct service apartments, and ground-floor office spaces – are being converted into highly efficient and profitable micro-fulfilment hubs. This 'The strategic repurposing allows the establishment of a dense network of hyper-local fulfilment centres, bringing inventory closer to the customer than ever before. This model not only optimizes delivery times to within minutes but also significantly reduces last-mile logistics costs, making quick commerce economically viable and scalable in densely populated urban environments,' said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE The business model behind quick delivery is based on rapid inventory turnover and proximity to the customer base. As a result, companies are leasing multiple, small-format spaces instead of large centralized hubs. Each warehouse typically serves a radius of 2-3 km, enabling delivery within 10-12 micro-fulfillment centers stock fast-moving consumer goods (FMCG), fresh produce, snacks, and beverages that can be delivered within minutes of order placement. Additionally lack of financial visibility for landlord and large corporates are making it difficult to attract a complaint property. According to J P Morgan, Zomato-owned Blinkit and Swiggy Instamart are accelerating the pace of dark store network expansion, while the IPO-bound Zepto is slowing down. It had earlier said in 2024 that the total count of dark stores will reach 700 March 2025. Live Events A recent research note from a global brokerage firm said that both Blinkit and Instamart added over 150 dark stores during the January-February period, while Zepto experienced a slowdown in its dark store additions. The brokerage estimates that Blinkit currently operates the largest dark store network in the country, with approximately 1,229 stores, surpassing Zepto, which has 1,147 dark stores. Additionally, these companies have reportedly reduced the average delivery time to under 10 minutes in over 70% of their active zones. 'Q-commerce companies are not just tenants anymore; they are now driving demand and influencing micro-markets,' says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India . 'We are witnessing increased lease activity in areas like Andheri (Mumbai), Koramangala (Bengaluru), and Kukatpally (Hyderabad), where even ground-floor retail and idle parking spaces are being converted into dark stores.' While metros remain the hotbeds of Q-commerce activity, the next wave of growth is firmly taking root in Tier-2 cities such as Jaipur, Coimbatore, Nagpur, Lucknow, and Surat. Improved digital penetration, rising disposable income, and consumer demand for convenience are driving expansion beyond the traditional top six cities. Coimbatore and Indore are seeing a spike in short-term leases for 1,500–3,000 sq ft units. These aren't just warehousing deals—they are hybrid agreements with retail landlords looking for steady rentals in high-footfall areas. Local developers and real estate investors in these cities are increasingly converting underutilized properties into rentable dark store formats. In Jaipur, for example, a former banquet hall near Mansarovar was recently repurposed into a 24/7 fulfillment hub for a grocery delivery firm, generating a 20% higher rental yield than its previous use. As India's first integrated supply chain infrastructure platform, IndoSpace has set up its first such format–INLOGIS Chembur—a 150,000 sq. ft in-city warehousing hub in Mumbai. IndoSpace is scaling this model across major metros to unlock proximity, reduce delivery times, support hyperlocal fulfilment, and power the future of last-mile logistics. ' 'Designed for high-efficiency delivery with features like cargo elevators, EV charging, and solar panels, it caters to the surging quick commerce market projected to triple by 2027. With unit sizes from 5,000 to 35,000 sq. ft, INLOGIS enables rapid service to over half of Mumbai', said a source. The rise of hyperlocal warehousing is also subtly impacting rental dynamics in urban pockets. Rents for ground-floor spaces in residential-commercial mixed-use zones have jumped by 10-18% in key micromarkets since 2023, according to Knight Frank. 'We believe the future of urban logistics lies in Grade-A in-city warehousing and micro fulfillment centers,' said Vamsi from Sumadhura. 'With the Q-commerce boom driving demand for over over 10 dark stores per cluster in some metros, there's a clear need for optimized, compliant, and scalable urban logistics hubs. We are seeing strong traction for shared 3PL platforms, and our goal is to build flexible, multi-tenant spaces that enable this shift. By embedding hygiene, safety, and automation-readiness from day one, we aim to offer long-term value to operators. Our investment case shows these hubs can deliver returns on par with top-tier commercial assets,' Vamshi Karangula Vice President Sumadhura Group According to experts, demand for hyperlocal warehouses is poised to grow in tandem with the Q-commerce sector, which is projected to reach $5.5 billion by 2025, according to RedSeer Consulting. Industry estimates suggest that India may require over 12–15 million sq ft of small-format warehousing space in the next three years to meet delivery demand from urban and Tier-2 consumers. For developers, especially in land-constrained metros, this opens up a new monetization avenue. Even older commercial buildings, retail stores, and standalone houses can be repositioned as revenue-generating micro-hubs. 'Dark stores thrive on speed and efficiency, typically holding just 2–3 days of inventory to meet rapid order turnover. Their ability to pay higher rentals is driven by location—delivery time and household reach matter more than size. With limited organized supply, many are set up in repurposed residential, retail, or workshop spaces across cities,' said Chandranath Dey , India Head - Operation & Business Development, Logistics & Industrial, JLL. As the 10-minute delivery race heats up, India's real estate sector is not just enabling the change—it's being transformed by platforms initially focused on groceries, fresh produce, and essentials are now diversifying their offerings to include electronics and personal care items, among other products." Economic Times WhatsApp channel )
Mint
23-05-2025
- Business
- Mint
Flipkart on track to open 800 dark stores by December as quick commerce booms
Bengaluru/Delhi: Flipkart Minutes, the quick commerce arm of the Walmart-backed e-commerce giant Flipkart, is experiencing a surge in demand, with order volumes doubling nearly every 45 days. This rapid growth is fuelling optimism for the service's ambitious expansion plans, which aim to increase its network of dark stores to 800 by the end of 2025, doubling from the current 400, the company's top executives told Mint. Also Read | As Kabeer Biswas jumps to Flipkart, no resolution yet in sight for Dunzo Currently operating in 17 cities across India, Flipkart Minutes is focusing on deepening its reach within its top-performing urban centres by extending its service to more pin codes. The firm—which entered quick commerce much later than its peers—will continue expanding aggressively to catch up with its rivals and grab a share of the growing market. Also Read | Quick medicine delivery: Startups gear up against giants Flipkart and Swiggy 'We'll go where the customer is. We have built everything from the sustainability perspective and we are very committed to [delivering in] 10 minutes as well," Kanchan Mishra, vice-president at Flipkart, said in an interview. Minutes has helped improve Flipkart's overall customer retention with a larger number of people now transacting on the platform more frequently. 'What we have seen is quick commerce has enabled us to grow our pie in certain categories. We are able to bring customers back more often, and we are able to make our customers buy a much wider set of products from the platform. So it's been adding to the retention of our customer base, adding to the spend per customer on the platform and adding to the transaction per customer on the platform." According to Mishra, nearly 40% of Flipkart Minutes' users make a repeat purchase every two weeks. Flipkart launched Minutes in August 2024 in select pockets of Bengaluru, much after its competitors Swiggy Instamart, Zomato-owned Blinkit, and Zepto. Entering late in the game, Flipkart had lots to catch up on—right from setting up dark stores to matching delivery speed. Quick commerce is projected to grow at over 40% annually through 2030, driven by expansion across categories, geographies, and customer segments, per a report by Bain & Co. While quick commerce began with grocery, 15–20% of its gross merchandise value now comes from categories such as general merchandise, mobile phones, electronics, and apparel. Over two-thirds of all e-grocery orders and a tenth of overall e-retail dollars are being spent on these platforms. To be sure, India's e-retail market touched $60 billion in 2024, per March 2025 estimates by Bain & Co. Meanwhile, quick-commerce gross merchandise value touched $6-7 billion in 2024, with over 20 million annual active shoppers. 'The need for speed for our customers is very evident. We have seen that quick commerce has helped bring in customers more often and enable them to buy a much wider set of products from the platform. It has been adding to the retention and spends per customer," Mishra said. 'Quick commerce is all about building on strengths. Building the hyperlocal and daily essentials business are the two the key things to focus on. And this is an extremely execution-heavy business," said Kabeer Biswas, the newly-appointed head of Flipkart Minutes. Daily essentials account for 90% of Minutes' transactions, while large-ticket items like electronics and beauty and personal care products dominate in terms of order values, Mishra said. Flipkart's quick commerce arm has also benefited from hyperlocal logistics that is now available in commoditized form in India, helping it move ahead despite making a late start compared to its quick commerce peers, Mishra added. 'With hyperlocal density, yes we have had a late start, but given that it is almost commoditized across the country, we have been able to build decent capacity," Mishra said. 'What we see has been playing is the strength of the platform that powers us. We have seen very strong synergies coming in from our shared supply chain and logistics network, where we share warehouses and the logistics network that powers Flipkart. We have seen very strong early adoption coming in from customers as well," Mishra noted. Quick commerce—characterized by high cash burn and unsustainable unit economics—typically requires consistent investment. While Flipkart will continue to infuse capital to expand the service, it doesn't seem to be much bothered about cash burn. 'What plays favourably for us is we have a massive base of customers already available to us that makes our cost of customer acquisition very, very efficient. We already have 75% of the supply chain investments deployed from the larger Flipkart business. That makes our journey to increasing our footprint a lot easier on the cost front. We also have a rich technology platform that's built and operating at scale, which makes go-to-market for us easier," Mishra added. Naturally, competition in quick commerce is heating up, prompting companies to bulk up investments in expanding dark stores and hiring more personnel to keep delivery timelines short. In the third quarter of FY25, Zomato said it will continue to accelerate Blinkit's expansion, burning cash to reach 2,000 dark stores a year ahead of target even as the quick-commerce business pulled down its profit. Net profit of Zomato (rebranded as Eternal) saw a sharp decline of 78% year-on-year (y-o-y) in January-March quarter to ₹39 crore, largely on account of the accelerated investments in its quick-commerce business Blinkit. Swiggy's net loss widened to ₹1,081 crore from ₹555 crore a year ago. Established companies such as Zepto, Blinkit and Swiggy Instamart are already sitting on thousands of dark stores. Blinkit crossed the 1,000 dark store milestone early this year. Rival Swiggy added over 300 dark stores for Instamart, its quick commerce service, taking its store count up to 1,021.
Mint
22-05-2025
- Business
- Mint
Tata Digital CEO Naveen Tahilyani steps down to join Prudential Plc
Naveen Tahilyani has resigned as chief executive officer and managing director of Tata Digital after a brief one-year stint, following efforts to scale the firm's super-app model that has seen sluggish growth. Tahilyani will join UK-based asset management firm Prudential Plc as the regional CEO for India, Africa, Cambodia, Laos, and Myanmar, with additional responsibility of the health vertical, the firm said in a statement on Thursday. Tahilyani will join Prudential's business and group executive committee on 29 July, reporting to Prudential's CEO Anil Wadhwani, and will be based in India. Tahilyani's departure raises fresh challenges for Tata Digital. Since Tata Digital was founded in 2019, parent Tata Sons, under chairman Natarajan Chandrasekaran, has invested over ₹ 18,000 crore in buying companies like BigBasket and 1MG to build a super-app business. But it has remained a pipe dream. Tata Digital's balance sheet remains far from healthy. In the year ended March 2024, its revenue almost doubled to ₹ 421 crore, while its losses narrowed from ₹ 1,370 crore in FY23 to ₹ 1,201 crore. The CEO's departure comes at a crucial juncture for Tata Digital that has been trying to revive its super-app dreams through Neu, set up in April 2022. It is now banking on quick commerce to take on Swiggy Instamart, Zomato-owned Blinkit and Zepto. The firm has also seen a host of top-level exits in recent years, with the firm's president Mukesh Bansal stepping away from daily operations in early 2023. Tahilyani replaced Pratik Pal as CEO of Tata Digital in February 2024 who served for over five years. Tata Group's ambitious super-app Neu was crucial for the conglomerate as it looked to beat rival firms Adani and Reliance on its digital strategy. Mint reported in 2023 that the super-app is expected to meet just half of the sales target in its debut year, which forced the sprawling Indian corporate to review its digital strategy. Tahilyani was earlier the MD and CEO of Tata AIA for seven years across two separate stints, with a period in between leading AIA's Group Partnership Distribution business across Asia. Prior to his insurance career, he spent 17 years in McKinsey advising banks and insurance companies in Asia. Commenting on Naveen's appointment, Prudential Plc's CEO Anil Wadhwani said, 'Continuing to build our Health pillar, and driving growth across India, Africa, the Philippines, as well as Cambodia, Laos and Myanmar are strategic gamechangers for Prudential. I am confident Naveen is the right leader in the right location to deliver the impact we need.'
