Q-com enablement firms pick up speed as D2C brands eye faster deliveries

As D2C brands embrace quick commerce for faster deliveries, logistics firms are scaling up operations and securing funding to meet rising demand in a rapidly growing market

At a time when new-age direct-to-consumer (D2C) brands are reporting exponential growth via quick commerce (q-com) channels, these brands are also opening up new avenues of growth for logistics platforms that enable quick deliveries.

 

Many of these logistics enablement companies have, in recent months, secured funding to scale their q-com operations as more brands explore quicker deliveries to boost productivity.

 

Funding abound for q-com enablers 

Q-com enablement platform Blitz recently raised Rs 51 crore ($6 million) in Series A funding from IvyCap Ventures to enhance its 60-minute delivery infrastructure and expand its dark store network across India’s top 20 cities.

 

Blitz, also backed by investors such as India Quotient and Alteria Capital, along with notable angels like Ramesh Bafna of Zepto, is witnessing a significant shift in consumer and brand behaviour towards quick commerce.

 

“Brands adopting quick commerce are experiencing a 50 per cent reduction in return-to-origin (RTO) rates and a 25 per cent increase in website conversions, directly attributable to faster deliveries,” said Yash Sharma, co-founder and chief business officer (CBO), Blitz.

 

Founded in 2020 by Sharma, Gaurav Piyush, and Mayank Varshney, Blitz is currently operational in 10 cities, including Bangalore, Delhi NCR, Mumbai, Hyderabad, Jaipur, Chandigarh, and Pune. The firm aims for tenfold growth in FY25, targeting an annualised revenue run rate (ARR) of Rs 500 crore by March 2026.

 

Similarly, q-com logistics firm Pikndel has also recently raised funds to offer delivery solutions for D2C and e-commerce brands. The firm raised $1 million in a seed funding round from VC Grid, with participation from D2C Insider Angels, Breathe Capital, and Venture Catalysts, among others.

 

Founded in 2022 by Siddharth and Tullika Batra, Pikndel operates a network of shared dark stores and a tech-enabled last-mile fleet, offering brands multiple delivery options ranging from one-hour to next-day delivery.

 

“Across our over 40 customers, we are observing robust and rapidly growing interest in quick commerce solutions. Currently, revenue from our two-hour delivery services is in the early single digits, but we anticipate it will grow to 20 per cent of our total revenue in the next 2–3 months,” said Siddharth Batra, co-founder, Pikndel.

 

Another platform addressing quick delivery challenges is full-stack fulfilment startup Zippee. Founded in 2021, the company operates a network of 150 dark stores and a last-mile delivery fleet to offer same-day deliveries.

 

“At Zippee, we project a fourfold increase in growth by the end of this year. The long-term potential of q-com is immense as brands integrate faster delivery as the norm in their supply chain strategy… By 2025, every forward-thinking brand in India will need to incorporate same-day delivery for consumers to stay relevant,” said Madhav Kasturia, founder and CEO, Zippee.

 

According to data from market intelligence platform Tracxn, Zippee has raised a total of $3.5 million to date across four rounds from investors like Haldiram’s, Piper Serica VC, and South Asia Technology Partners. It has also attracted investments from prominent entrepreneurs such as Peyush Bansal, Ashneer Grover, and Kunal Shah, among others.

 

The company currently operates in ten cities and claims to have served 155 D2C brands, including Lenskart, Clinikally, Mondelez, Masterchow, Supertails, and more. According to Kasturia, Zippee is operating with a waitlist of 105 brands.

 

D2C drives demand 

Most of the demand for quick deliveries is being driven by new-age D2C brands. Categories such as beauty and healthcare are emerging as hits, followed closely by electronics and fashion.

 

“The shift towards quick commerce is no longer optional for brands aiming to remain competitive—it’s rapidly becoming a necessity,” said Batra.

 

Several brands, recognising the value in quick commerce, are investing in building infrastructure and logistics to roll out their own quick delivery services, independent of incumbent quick commerce platforms.

 

PhonePe-owned Pincode is reportedly piloting a quick delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi, under which it is delivering groceries and other products in 10–20 minutes.

 

Flipkart-backed lifestyle e-commerce platform Myntra is piloting a quick delivery service that guarantees delivery within two hours in select areas of Bengaluru under the name M-Now. Similarly, beauty and personal care (BPC) major Nykaa recently piloted its 10-minute delivery service in select parts of Mumbai, covering 5 per cent of its SKU base.

 

Licious, a direct-to-consumer meat brand, is also testing 15-minute deliveries for ready-to-eat meals in select locations in Gurgaon, although its standard delivery promise is 30 minutes. Likewise, gifting platform FNP has recently introduced its 30-minute delivery service across 36 cities nationwide.

 

Strong growth prospects 

According to industry estimates, q-com in India is currently a $3 billion market, accounting for just 5 per cent of the total e-commerce space. Having grown fourfold in the past two years, it is projected to expand into a $30 billion industry within five years.

 

“Unlike traditional e-commerce, quick commerce presents unique challenges, such as competition for limited warehouse space and inventory placement. Brands with deep pockets will naturally have an edge unless they can replicate a seamless quick commerce experience on their own platforms,” added Batra.

 

According to companies operating in the space, logistics tailored for quick commerce will remain a key growth area going forward.