Quick Commerce Majors Blinkit, Instamart And Zepto To Moderate Expansion Plans: HSBC
By the second half of 2025, dark store additions by 10-minute delivery companies will slow down, HSBC Global Research said.
The breakneck speed of the Indian quick commerce sector may be finally slowing down. After a period of intense competition and a frenzy of dark store openings, Zomato’s Blinkit, Swiggy Instamart, and Zepto are expected to moderate their expansion plans, according to a recent report by HSBC Global Research.
The report highlights that aggressive store additions have significantly impacted profitability across the sector. Companies have been pouring resources into rapidly expanding their delivery networks, leading to mounting losses. Blinkit, for example, reported that a significant portion of its losses in the December quarter stemmed from the costs associated with launching new stores.
However, HSBC believes that the industry is nearing a turning point. The report predicts that store additions will start to moderate in the second half of this year. Companies are expected to prioritise profitability over market share, and start optimising existing store capacity and improving efficiency.
"We believe we are near peak of this super expansion strategy," the report said. "We are likely to see moderation in this expansion strategy this year. Even Blinkit may not end up opening 1,000 stores this year," it said.
This shift in strategy could have a significant impact on the competitive landscape. While the sector holds immense potential, with an estimated 5,000-5,500 stores expected by the end of fiscal 2026, the focus will now shift towards sustainable growth and profitability.
The report also noted quick commerce players may bear the brunt of their aggressive expansion strategy in the March quarter of this fiscal, but an improvement is expected thereafter.
