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Online grocery game play: Can the segment avoid consolidation for long?

Recent spurt in investments into the space only point to intense competition between horizontal and niche players going forward

To bolster its grocery segment, Amazon has started selling it in four formats
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Photo: Shutterstock

Yuvraj Malik Bengaluru
In March alone, India’s top two grocery e-commerce firms saw mega funding rounds. Grofers received fresh money from SoftBank Vision Fund, the largest investor in the world, and market leader BigBasket got the backing of Alibaba and a bunch of new investors who together put around $150 million. Both were late-stage series-F rounds.

Squarely put, the space is now defined by four camps: BigBasket, Grofers, Amazon Pantry (including Prime Now, a two-house delivery service) and Flipkart Supermart. The last two are offerings by large horizontal marketplaces which have shown unwavering intent to win the segment. Flipkart and Amazon have massively grown