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Flipkart takes quick commerce beyond metros, aims for 800 dark stores
The Walmart-owned company's Flipkart Minutes service, launched 11 months ago, is already live in 19 cities including Ghaziabad, Guwahati, Jaipur and Kanpur, and aims to operate 800 dark stores by year-end. It has currently reached about 400 dark stores. The expansion is backed by a recent internal funding infusion of approximately ₹3,249 crore.
This geographic strategy, which sets it apart from competitors focused on affluent urban consumers, is already showing results. The service is doubling its business every 45 days, putting Flipkart on track to challenge market leaders despite starting later in the 10-minute delivery race.
Blinkit currently leads with 1,301 dark stores, followed by Swiggy Instamart with 1,021 and Zepto with over 750—giving Flipkart significant ground to make up in the competitive 10-minute delivery space.
'We are getting a very encouraging response,' Hemant Badri, senior vice-president and head of supply chain at Flipkart Group, told Business Standard. He said the traction in these smaller cities has exceeded expectations. 'We see that Flipkart's loyal customer base as well as new customers are trying it.'
The battle for India's quick commerce market is intensifying as consumer expectations shift towards instant gratification. Flipkart's user base now exceeds 500 million across 95 per cent of India's pincodes, giving it a potential advantage in reaching beyond the urban centres where most quick commerce players operate.
Fresh produce focus
Positioning fresh produce and high-quality perishables at the core of its strategy, Flipkart is leveraging existing infrastructure—fulfilment centres, cold chain logistics, and a 120,000-strong gig workforce—to expand delivery capabilities in underserved markets.
'We are picking from farmers and there are very few players who would assure that quality,' Badri said, highlighting the company's farm-to-fulfilment model that anchors fresh produce offerings around cold chain reliability and affordability.
The company sees quick commerce not just as an extension, but as an integrated offering aimed at delivering groceries and essentials within 10 minutes, particularly as India's festive season approaches.
Multi-speed delivery
'Whatever you order till 1 p.m., you get it delivered on the same day across 20 cities,' Badri emphasised.
To support this expansion, the company recently added a 450,000-square-foot fulfilment centre in Patna and is activating a 140-acre campus in Manesar. These infrastructure investments are critical as Flipkart heads into its flagship Big Billion Days sale around September.
Automation drive
Behind the expansion, Flipkart is investing heavily in AI and automation across its 100-plus logistics facilities. The company uses proprietary address intelligence models to flag inaccuracies and enable geofencing, allowing its last-mile fleet to operate more efficiently in smaller cities.
AI-led replenishment systems predict demand and automate restocking—critical for the Minutes quick commerce model. 'It's very important to predict what is going to sell in which store,' Badri said.
The company's Supply Chain Operation Academy trains around 15,000 individuals annually, helping standardise operations as Flipkart deepens its presence beyond major metros. This local workforce development creates job opportunities that allow workers to stay local rather than migrate to metros, Badri noted.
Investment race
The challenge for Flipkart will be maintaining its rapid growth pace while building the dense network of dark stores needed to compete effectively. With consumer demand spiking during festive periods, the company aims to scale consistently across 'more geographies' while enhancing 'execution, discipline and spread,' Badri said.
Whether Flipkart's tier-2 and tier-3 city strategy can generate the revenue density needed to justify massive infrastructure investments remains the key question.
But the opportunity is huge. The country's online retail market size may touch $325 billion by 2030—more than four times the $70 billion in 2022—mainly due to rapid growth of e-commerce in tier-2 and tier-3 cities, according to a Deloitte India report. This trend could validate Flipkart's geographic focus.
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Indian Express
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