Flipkart ramps up quick commerce: 500 dark stores before 'Big Billion Days'

Flipkart is set to expand its quick commerce service 'Minutes', aiming for over 500 dark stores by 2025, positioning itself as a strong rival to Blinkit, Zepto, and Swiggy Instamart

Flipkart is intensifying its push into quick commerce, aiming to establish 500-550 dark stores ahead of its flagship Big Billion Days sale this year, according to a report by The Economic Times. By March, the company is expected to have around 300 of these mini warehouses in operation for its ‘Flipkart Minutes’ quick commerce service, positioning itself as a strong competitor to Blinkit, Zepto, and Swiggy Instamart.  

 

The Walmart-backed e-commerce giant ventured into quick commerce around August last year, a segment witnessing rapid growth. Currently, it operates between 120 and 150 dark stores in densely populated areas. With its expansion plans for 2025 in motion, this would mark one of the fastest scale-ups in the sector amid increasing competition.

 

 

The news report quoted a source as saying that Flipkart is projected to surpass 300 dark stores by the end of March. The goal of crossing 500 suggests the company is gearing up for its major annual sale, typically held in October-November, the source added.

 

Dark stores play a crucial role in quick commerce by enabling platforms to store a diverse range of products and fulfill deliveries within 15-20 minutes on average.  

 

Insiders suggest that Flipkart has strengthened its market position in Bengaluru, its home base, while broadening its offerings to include high-value products such as electronics, appliances, and smartphones. This move aligns with recent strategies by Blinkit and Zepto, which have introduced brand partnerships to feature similar product categories.  

 

Swiggy Instamart, which reached 700 dark stores by December 2024, took over two years to hit that milestone. Meanwhile, Zepto surpassed 900 stores in January, while Blinkit leads the segment with over 1,000 dark stores.  

Flipkart hires Dunzo co-founder Kabeer Biswas

Flipkart appointed Kabeer Biswas, co-founder of Dunzo, last month to spearhead its quick commerce venture, Minutes.

The move is seen as a strategic effort by Flipkart to strengthen its position against competitors in the quick commerce arena, including Zomato’s Blinkit, Swiggy Instamart, and Zepto. These rivals are aggressively working to deliver everything from biryani and hot beverages to iPhones to customers within 10–15 minutes.

Heavy investments across sector  

Other quick commerce players are also investing heavily to scale operations. Swiggy reported a 40 per cent increase in losses, reaching Rs 799 crore in the December quarter, largely due to Instamart’s performance. However, higher spending on expansion has impacted its margins, with the company expecting a similar financial trend in the upcoming quarter amid intense competition.  

Given its current trajectory, Flipkart is poised to become the fourth-largest player in quick commerce. BigBasket’s BB Now is also competing in this space, while Amazon has reportedly begun testing a 15-minute delivery service in select Bengaluru localities, the news report said.  

Market leader Blinkit currently holds an annualised gross sales run rate of $3.7 billion, followed by Zepto at $3 billion and Swiggy Instamart at $1.8 billion, based on available earnings data and public statements.  

 

According to Bofa Securities, the quick commerce market in India is projected to grow from its current valuation of $21 billion to $31 billion by FY27 under a bullish scenario, expanding its share of the country’s retail market from 1.7 per cent to 2.4 per cent, the news report mentioned.