India’s Quick Commerce Market: Blinkit and Swiggy Instamart Expand Aggressively, While Zepto Slows Down – JP Morgan Report
The quick commerce sector in India is undergoing a significant shift in competitive dynamics, with Blinkit and Swiggy Instamart accelerating their dark store expansions, while Zepto is taking a more measured approach. According to a recent JP Morgan report, this divergence could signal a potential easing of competition intensity in the sector.
JP Morgan’s analysis reveals that Blinkit and Swiggy Instamart added over 150 dark stores each during January-February 2025 and are on track to add approximately 250 stores by the end of Q4 FY25. This aggressive expansion reflects their intent to strengthen their presence across tier-2 and tier-3 cities.
In contrast, Zepto has significantly slowed its dark store expansion. The report suggests that this moderation may help Zepto reduce its cash burn and marketing spend on new user acquisition, especially as it prepares for its upcoming IPO.
The slowdown comes amidst Zomato co-founder and CEO Deepinder Goyal’s recent claim that Zepto accounted for nearly half of the industry’s INR 5,000 crore quarterly burn. This stirred controversy, with Zepto CEO Aadit Palicha refuting the claim.
However, JP Morgan’s report indicates that Zepto’s cautious expansion strategy could help it contain its losses in the short term, making it a more attractive prospect for potential IPO investors.
JP Morgan estimates that Blinkit now operates 1,229 dark stores, edging out Zepto’s 1,147 stores. While the store count appears close, the two companies are following contrasting geographical strategies:
The report highlights that 20% of Blinkit’s stores are in smaller cities, compared to 22% for Instamart and just 12% for Zepto, underscoring Zepto’s more centralized approach.
The report also identifies clear regional preferences among the players:
Looking ahead, Blinkit aims to reach 2,000 dark stores by the end of 2025, while Swiggy Instamart is projected to hit 1,000 stores by Q4 FY25.
JP Morgan’s report also highlights the growing competition in the quick commerce space, with new entrants like Flipkart Minutes and Amazon Pay expected to intensify the race. According to a separate IIFL Capital report, established players, including Blinkit, Instamart, and Zepto, have reduced their discounting strategies. However, the entry of new players could trigger a fresh wave of aggressive pricing and promotional offers.
The quick commerce market in India is entering a new phase, with Blinkit and Instamart pushing for scale and market penetration, while Zepto adopts a more conservative growth strategy. With new players entering the fray and competition heating up, the sector is poised for further transformation in the coming quarters.
Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.