Quick commerce fuels niche D2C boom in smaller cities

Time of India

19 hours ago

Rapid expansion of
quick commerce
into smaller cities and towns is fuelling demand for niche direct-to-consumer (D2C) brands in categories ranging from
intimacy products
and
sexual wellness
to curly hair care and fitness accessories, where convenience and discreet delivery are key drivers.
While metros have traditionally been the mainstay for these new-age brands,
tier II and III cities
now account for a rapidly growing share of their sales amid greater online access and faster delivery, multiple brand founders, quick commerce platforms and analysts told ET.
MyMuse
, which sells intimacy products, gets almost a third of its revenue from non-metro regions while men's sexual health and wellness brand Bold Care derives over 40% of its total revenue from tier II and III cities, company executives said.
'When we unpack the data, especially around product adoption in tier-III, it's evident we're tapping into a long-ignored need – one that's only beginning to surface,' MyMuse cofounder Anushka Gupta told ET. 'Young Indians – regardless of geography – are seeking out ways to explore their pleasure without shame,' she added.
Aggressive expansion of platforms such as Zepto, Blinkit, and Swiggy
Instamart
has created a robust infrastructure for these specialised
D2C brands
to reach a broader, more diverse customer base, bypassing traditional distribution challenges.
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'Quick commerce has largely unlocked new tier II and III markets for us, increasing discovery and ease of access for users in these markets. It has really levelled the playing field for consumers,' Gupta said.
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MyMuse is present in over 800 cities.
According to Satish Meena, adviser at ecommerce consultancy Datum Intelligence, a set of customers who previously shopped on ecommerce platforms are shifting to quick commerce for certain categories of products for instant gratification. Many consumers who haven't used ecommerce before are also trying quick commerce because of its ease and accessibility, he added.
Underscoring the potential in tier-II cities and beyond, Zepto chief business officer Devendra Meel told ET, 'When we launched in Nashik, our stores hit 1,000 orders per day within six weeks, which is faster than in metro cities like Mumbai, Bengaluru, and Delhi-NCR, where it took three to four months to reach this milestone.'
BigBasket said it is recording about 50,000 orders per day from tier-II cities, with tier-III cities contributing around 7,000 daily orders.
Bold Care has seen more than 100% year-on-year growth in smaller cities, its cofounder and chief executive Rajat Jadhav said.
'Close to 60% of our future investments, including marketing, education, and distribution, are focused on strengthening our presence in tier II and III cities,' he said, adding that 'the next 100 million health-first consumers will come from' these cities.
In the beauty and personal care segment, there is a rising demand for specialised shampoos, conditioners, leave-in products, and serums for consumers with curly hair, according to Anshita Mehrotra, founder of haircare brand Fix My Curls.
'Although a majority of our sales still come from tier I cities, tier II regions are growing fast. Currently, our consumer base is split 70-30 between tier I and tier II cities but business from tier II cities will increase significantly this year,' she said.
Healthy snacking is another segment no longer confined to major cities. According to Abhishek Agarwal, cofounder of premium dry fruits and nuts brand Farmley, consumers across markets are now willing to spend a premium on healthier alternatives, reflecting a broader shift in eating habits. The brand recently raised $40 million in a funding round led by investment firm L Catterton.
Greater exposure to social media and digital platforms has made reliable health information more accessible to consumers in smaller cities, executives said.
Consistency challenges
'You can expect these categories to keep growing, but I think once they reach around Rs 1,000 crore on quick commerce, growth will likely stabilise, as the purchase frequency isn't high (in smaller towns),' Datum's Meena said.
A key challenge quick commerce firms and brands face in smaller towns, according to him, is inventory management 'as you are not going to see consistent demand across all dark stores.'
'So how do you forecast demand and plan inventory accordingly?' Meena said.
Penetrating the broader market is also challenging, largely due to price sensitivity, especially in categories like curly hair care where consumers are often expected to purchase multiple products to complete a routine.
Brands are trying to bridge this gap through targeted marketing and awareness efforts, particularly among Gen Z consumers, who are increasingly drawn to skincare and haircare products with proven clinical efficacy.
As brands turn their focus to smaller cities, quick commerce platforms are also ramping up their presence in these regions.
According to an HSBC report, the industry is expected to have 5,000-5,500 dark stores by the end of FY26.
Zepto has crossed the 1,000-store mark while Instamart has reached 1,021 dark stores after adding 316 in the March quarter. Market leader Blinkit, with 1,301 dark stores as of March, is on track to scale up to 2,000 stores by December.
Flipkart Minutes, the quick commerce unit of Walmart-owned ecommerce major Flipkart, has over 400 dark stores in 19 cities, including Ahmedabad, Jaipur, Guwahati, Kanpur, Patna, and Thane. It aims to
double that number to 800 stores
by the end of the year.
'We have been witnessing increasing traction from customers across metros, tier 1, and tier II regions,' said Kanchan Mishra, vice president at Flipkart Minutes. 'Demand for high-value categories such as smartphones, impulse electronics have surged on Minutes, with a growth of 2x between January and May 2025.'