Indian Ecommerce In The Quick Commerce Age: 8 Predictions For 2025

The year 2024 was a mixed bag for ecommerce, shaped by economic uncertainty, cautious consumer spending, and selective investor activity. Despite these challenges, the focus shifted toward profitability and strong unit economics, signaling a new wave of investor priorities, just as we entered 2025.

Yet, if one trend truly stood out, it was the meteoric rise of quick commerce, and how these consumer services startups have changed the ecommerce game. What once seemed like an ambitious dream—a 20-minute grocery delivery—has now become the standard. Anything slower feels underwhelming, highlighting how much consumer expectations have evolved, and therefore how marketplaces and brands need to adapt to the new reality.

Quick commerce disrupted traditional ecommerce marketplace models, redefining business models and how customers shop. Even direct-to-consumer (D2C) brands, that once favoured marketplaces, are more focussed on the quick commerce channel today.

The numbers back up the buzz. Blinkit reported a 186% year-on-year revenue growth for FY24, while Swiggy Instamart is contributing significantly to Swiggy’s impressive INR 10 Cr revenue run rate in FY24. Despite being a relatively young startup, Zepto doubled its revenue to INR 4,454 Cr in FY24, and outpaced both these giants.

New players like Waayu, Slikk, and Swish are entering the game, inspired by the success of incumbents. This has forced ecommerce giants such as Flipkart, Amazon India, JioMart, Nykaa and others to explore new models.

Dhruv Kapoor, partner at Anicut Capital highlighted how Myntra’s move to offer “30-minute” delivery has set a new benchmark for consumer expectations in ecommerce. This shift is not just a game-changer for existing companies but also for anyone planning to enter the ecommerce space in the future.

“When ecommerce started around 2014-15, it was all about price—offering the best deals was the main attraction,” Kapoor explained. “But now, the focus has shifted to convenience. Customers prioritise speed and ease over price, and that’s redefining the industry.”

He believes this growing demand for convenience is the biggest disruptor in how ecommerce operates today and will continue shaping its evolution in the years ahead.

Moreover, the tech stack for ecommerce has also evolved drastically, with AI-driven customisations transforming customer interactions. As Krishan Agarwal, Director at DigiHaat, noted, the appetite for innovation in this space remains relentless.

Additionally, global data privacy regulations have pushed companies to strengthen compliance, while the expanding reach into India’s Tier II and Tier III cities has broadened the customer base. Together, these factors have significantly reshaped the ecommerce landscape in 2024.

Overall,  the ecommerce market in 2024 grew steadily, driven by greater digital penetration and higher consumer spending, particularly in non-metro locations. The outlook for 2025 remains positive, with a trend toward improved omnichannel experiences, sustainability-focussed initiatives, and broader expansion into emerging markets.

Looking ahead to 2025, questions remain: Will ultra-fast delivery continue to dominate, or will consumer demand shift in new directions? How will technology drive the next wave of innovation? Will investors open their purse strings again for ecommerce in 2025? Here’s a glimpse into what the future might hold.

Ecommerce Investors To Go Cautiously In 2025

In 2024, ecommerce startups raised $1.5 Bn through 203 funding deals. This marked a decline of 36% from the $2.04 Bn raised across 198 deals in 2023. Although the number of deals increased year-on-year, the average funding size dropped by almost 41% from $13 Mn to $7.6 Mn, reflecting a shift in investor sentiment.

Many investors attributed their reduced interest in the sector to challenges like unsustainable business models, lack of unique differentiation, and weak unit economics. Despite these hurdles, industry experts remain optimistic about the future of ecommerce funding.

Ankur Mittal, Co-Founder of Inflection Point Ventures and Partner at Physis Capital, highlighted that ecommerce funding in 2025 is likely to grow. He expects investors to focus on technology-driven platforms, specialised D2C businesses, and industries prioritising profitability. Segments like ecommerce SaaS and quick commerce are poised to attract significant attention due to their innovative and scalable nature.

Also,  domestic investment is likely to increase due to favorable legislation and the success of local companies. International financing will remain consistent, with global investors looking for scalable, creative Indian ecommerce firms.

“According to Inc42’s projections, the ecommerce sector could raise $1.8 Bn in 2025, a 20% increase compared to 2024, signaling renewed confidence and opportunities in the space.”

Seed Stage Funding To Gain Priority

Early-stage funding is expected to rise as investors back fresh ideas and emerging categories. Growth-stage investments may remain steady, with VCs prioritising scalability, while late-stage funding will likely focus on profitable companies with clear paths to IPOs or acquisitions.

Ashutosh Valani, Co-Founder of Renee Cosmetics, echoed this optimism, emphasising the revival of funding driven by new venture capital funds focussed on seed stage startups.

According to Inc42 data, in 2024 alone, more than 81 new funds were launched, with almost 44% of them having ecommerce segments in focus such as D2C, SaaS, quick commerce, and consumer brands. Notable funds with ecommerce include Sauce VC, Stride Ventures, Anthill, Arigato Capital, and Huddle Ventures among others.

Anicut Capital’s Dhruv Kapoor added,”We’re definitely seeing a lot of activity happen in the D2C side where new age consumer brands are still coming up and addressing market opportunities,”

Further, in 2025, the ecommerce sector is expected to see the emergence of new unicorns, notably in specialty categories such as quick commerce, ecommerce SaaS, and innovative direct to consumer brands. These firms will be notable for their profitability potential, creative offers, and scalability in both domestic and international markets, emphasised Ankur Mittal..

Multi-Channel Approach Will Be A Must 

In conversation with Inc42, several industry stakeholders emphasised that adopting a multi-channel approach has become a must for channelising every quick conversation, irrespective of the stage at which the ecommerce player has been operating.

For instance, a D2C brand often started with ecommerce marketplaces, and then extended to its own website and then cracking offline trade was considered the biggest milestone. Even today, the investors consider offline as a big game changer in the journey of any ecommerce startup.

However, today one can’t go offline unless they’re doing a couple of crores of revenue a month because there is a high cost of distribution and lower profit margins. Plus, the new age brands have all the playbooks in front of them, and with quick commerce at the forefront, adopting a multi-channel approach is kind of a must to achieve scale and achieve investor confidence.

“Quick commerce has become an integral part of early channel expansion, and as we have already seen, the entry of marketplaces like Flipkart, Myntra, Nykaa, Amazon among others is further validating this trend that having a multi-channel approach cannot be regarded,” added Alok Mittal, cofounder and executive chairman at Indiffi Technologies.

Sachin Dixit, Internet Lead Research Analyst at JM Financial Ltd, presented a different view though. He shared that 2025 is expected to see a revival in consumer discretionary spending, creating new opportunities for ecommerce players across the ecosystem.

He noted the growing buzz around quick commerce, suggesting it could surpass traditional ecommerce. However, he emphasized that only time will reveal its true potential. “Quick commerce has impressed the early adopters—around 5–10 million experimentative users—but the real test lies ahead. As brands aim to reach the next 20–50 million users, they’ll need to prove whether their business model can scale nationwide or extend into new verticals beyond their core offerings,” he explained.

Dixit highlighted that online performance will be a decisive factor for quick commerce in the coming year. While 2024 brought significant valuations for the sector, 2025 will determine if it can deliver sustainable success.

Marketplaces, feeling the heat from quick commerce, have started adapting defensively as quick commerce begins to influence their key categories. Alok Mittal predicts that quick commerce may eventually become essential for every ecommerce marketplace, pushing platforms to continue diversifying their offerings.

Dhruv Kapoor of Anicut Capital noted that investors are now cautious, prioritising differentiation over more players in an already crowded market. This could lead to increased consolidation and new business models in the ecommerce space.

He also highlighted opportunities for vertical growth in quick commerce, where players could specialize in specific categories with streamlined supply chains for faster deliveries. Additionally, expanding quick commerce to rural areas with 15-30 minute delivery models could unlock untapped potential, marking the next frontier in this fast-evolving industry.

IPO Exits Will Become A Norm

India’s strong position in the equities market, compared to global peers, has experts predicting a bullish IPO trend for 2025. Public offerings are expected to exceed $20 billion, up from $16 billion in 2024. Companies with international reach and innovative strategies are likely to lead this surge, attracting significant interest from investors.

In 2024, major IPOs like Swiggy and FirstCry showcased the growing strength of ecommerce in public markets. Looking ahead, several ecommerce players with solid growth and profitability are gearing up for their debut. Notable names include BlueStone, boAt, CaptainFresh, CarDekho, EcomExpress, Infra.Market, OfBusiness, Zappfresh, Zepto, and Zetwerk.

The pipeline for tech IPOs is also gaining momentum. Industry experts highlight Flipkart’s plans to “reverse flip” and list in Indian markets as a key factor boosting enthusiasm. Successful listings like Zomato and Swiggy have dispelled concerns about tech businesses being overly reliant on burning cash, proving they can be profitable while continuing to innovate.

With rising investor confidence, the IPO market for tech and ecommerce companies is thriving. Many businesses are actively preparing to go public, signaling a vibrant and dynamic future for the sector.

Cross-Border Ecommerce To Witness Significant Growth

Cross-border ecommerce is experiencing strong growth as Indian startups increasingly target international markets. Sectors like fashion, beauty, and home décor are set to drive this expansion, fueled by improved logistics, rising demand for foreign brands, and export-friendly government regulations.

Indian brands are no longer just appealing to NRIs; they’re reaching a global audience, including customers in the US, Europe, and Canada. A prime example is Ayurveda Experience, which sells hair and skincare products rooted in Indian traditions to 98% of its customers overseas.

“This shift is possible because Indian businesses have raised their game, meeting global benchmarks in quality, timely delivery, and customer experience. With these improvements, cross-border ecommerce is poised to unlock even greater opportunities in the years ahead,” added Anicut Capital’s Dhruv.

Premiumisation To Dominate D2C Segment

Premiumisation and niche markets are expected to lead the way in the direct-to-consumer (D2C) segment. Investors remain highly interested in D2C brands because of their potential for high margins, strong customer loyalty, and growth in specialised areas like sustainable fashion, organic beauty products, and luxury goods.

They are particularly drawn to emerging D2C companies that offer unique value propositions, with a growing focus on sustainability, subscription models, and hyper-personalisation.

Alok Mittal from Indiffi highlights the importance of category expansion in D2C. He points out that markets like premium stationery, which haven’t been fully tapped yet, present exciting opportunities. While some categories like shoes have been explored, there’s still a vast potential for growth.

Looking ahead to 2025, he predicts more category and product expansion in the D2C space, with even larger players diversifying their offerings beyond just one brand or product.

AI To Revamp Ecommerce Operations

As consumer price sensitivity grows, companies are shifting their focus toward profitability, aiming to scale operations without burning through cash. They’re also adapting to new ecommerce and consumer protection regulations to stay compliant. Meanwhile, aggressive international players are expanding into India, ramping up competition at a rapid pace. One major challenge is managing logistics costs, especially for last-mile delivery in smaller cities (Tier 2 and Tier 3).

Analysts believe that artificial intelligence (AI) will be key to driving growth in the ecommerce sector. AI-powered tools, particularly in the ecommerce SaaS space, will help with personalisation and inventory management, improving operational efficiency.

Other factors fueling this growth include the rising demand for hyper-personalized shopping experiences, increasing consumer awareness around sustainability, stricter data privacy laws, and the broader use of AI and machine learning to enhance both operations and customer engagement.