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Time of India
24-05-2025
- Business
- Time of India
Flipkart Minutes eyes profitability, higher order value via broader product mix
Flipkart Minutes , the quick commerce arm of Walmart-owned Flipkart, is looking to drive higher average order values (AOVs) and profitability by tapping into the parent platform's wider product catalogue, two senior company executives told ETtech. The service currently operates 400 dark stores across 17 cities, and aims to scale that to 800 by the end of this year, as Flipkart group CEO Kalyan Krishnamurthy indicated in April. 'Every category on the Flipkart Minutes is capable of being delivered within 10 minutes,' said Kabeer Biswas, vice president at Flipkart Minutes and founder of hyperlocal logistics startup Dunzo. 'The size and shape of each category differs, but most can be fulfilled within 10 minutes as consumer behaviour shifts,' he said. Biswas, who joined the company in January, after the cash-strapped Dunzo stopped operations, explained that delivery timelines vary by category definition. Kanchan Mishra, vice president at Flipkart, added that essentials like vegetables and dairy are low-value, and the platform's push into long-tail categories is key to improving margins. 'Profitability comes when your AOV hits a sweet spot, backed by strong daily order volumes per store. Long-tail items help lift AOVs and play a big role in customer retention and frequency,' she said. On May 13, ETtech reported that Flipkart is capping Minutes' rollout to the top 8–10 cities to rein in cash burn. However, the rapid scale-up to 800 dark stores is among the fastest in India's quick commerce space, where rivals include Blinkit (Eternal), Swiggy Instamart , Zepto, and Tata Digital-backed BigBasket . Biswas said the service is also seeing traction in tier-II and tier-III cities, with expansion plans being evaluated on a quarterly basis. 'The plan is to reach 800 stores in relevant cities based on existing demand and to recalibrate every quarter. The ambition is larger, and right now we're doubling daily order volumes every 45 days,' he said. Flipkart rival Amazon has also begun piloting quick commerce services in Bengaluru via Amazon Now, as reported by ETtech.
Business Standard
23-05-2025
- Business
- Business Standard
Flipkart Minutes Expansion: Flipkart expands quick commerce to tier-2 and tier-3 cities nationwide
Months after joining Flipkart to lead its quick-commerce arm, Kabeer Biswas is accelerating efforts to position the Walmart-owned retailer as a serious contender in the ultrafast delivery race. Biswas is spearheading Flipkart Minutes' expansion, with the service doubling its business every 45 days and aiming to operate 800 dark stores across the country by the end of the year. As rivals Blinkit, Swiggy Instamart, and Zepto focus largely on urban consumers, Biswas says Flipkart Minutes' strategy hinges on scale, speed, value, and deep penetration into tier-2 and tier-3 cities. It is leveraging the company's existing logistics and supply chain infrastructure to deliver groceries, daily essentials, and other products within 10 to 15 minutes. 'The value we can deliver per transaction is fundamentally what differentiates us from the competition,' said Biswas, vice-president at Flipkart Minutes. 'Given our size and the scale of the business, our ability to deliver value to customers is significantly greater than anybody else's.' According to Biswas, consumer expectations are shifting, with demand for fast delivery expanding beyond groceries and daily essentials. Flipkart's quick-commerce business, launched just 10 months ago, is now present in 17 cities — including metros and locations such as Ghaziabad, Faridabad, Guwahati, Jaipur, Kanpur, Lucknow, and Thane. Amazon has also entered the space with its own service, Amazon Now. Since joining Flipkart a quarter ago, Biswas has taken charge of Flipkart Minutes with a clear mandate: scale fast and scale smart. He said Flipkart Minutes is built on core pillars such as daily essentials retailing, hyperlocal delivery, store-level supply chains, expansion into long-tail SKUs (stock keeping units), and customer acquisition and retention. He added that Flipkart already excels in logistics, supply chain, and customer reach — giving Flipkart Minutes a significant head start. The current strategy focuses on layering daily essentials and hyperlocal capabilities atop this infrastructure. 'We are building on that shared infrastructure,' said Kanchan Mishra, another vice-president at Flipkart Minutes. She added that leveraging Flipkart's engaged user base has helped keep customer acquisition costs low, while enabling higher order volumes. Mishra noted that another strategic advantage is Flipkart's broad category portfolio. Unlike quick-commerce rivals focused primarily on fast-moving essentials, Flipkart Minutes offers a wider assortment — from groceries to personal care — supporting a more sustainable store-level profit profile. ALSO READ: E-commerce giants Flipkart, Amazon deepen fashion push in smaller cities Analysts estimate Flipkart and Amazon may each need to invest at least $1 billion over the next few years to scale their quick-commerce operations and close the gap with rivals. Blinkit currently leads with 1,301 dark stores, followed by Swiggy Instamart with 1,021, and Zepto with over 750. Flipkart declined to disclose specific investment figures. However, Biswas emphasised that Flipkart Minutes is uniquely positioned to scale rapidly and cost-effectively by leveraging existing infrastructure. The approach, he suggested, focuses on thoughtful, infrastructure-led expansion. While grocery and household essentials dominate quick-commerce sales, players such as Blinkit, Swiggy Instamart, and Zepto are rapidly expanding into premium categories like electronics and fashion. Mishra said Flipkart Minutes is seeing strong traction in premium categories including electronics and lifestyle products. Transactions involving higher-value items are steadily rising, with many now fulfilled via Flipkart Minutes' under-15-minute delivery network. 'The ability to deliver electronics — laptops, fitness gear and more — in under 15 minutes is proving to be a game changer,' said Mishra. 'There are very few platforms globally offering that at this scale.' Tier-2 and Tier-3 Cities As ultrafast delivery expectations spread beyond metro areas, Flipkart Minutes is positioning itself to meet rising demand in smaller towns — without requiring massive new infrastructure. Biswas cited a recent survey that showed even tier-3 consumers now expect 10-minute deliveries, highlighting the rapid evolution of customer expectations. He said Flipkart's pan-India logistics network — covering nearly every pin code — provides a structural advantage over newer players. This allows Flipkart to launch in new cities such as Patna within as little as four weeks of decision-making. According to Biswas, 75 per cent of the supply chain work is already done thanks to the parent network. Flipkart Minutes focuses on the final 25 per cent — the last leg of delivery — giving it speed and flexibility. Profitability Outlook While India's quick-commerce market remains in its early stages, Biswas believes the long-term economics of the model are becoming more promising. He pointed to emerging benchmarks and recent disclosures from competitors that suggest sustainable unit economics are within reach — contingent on network build-out, user acquisition, and customer retention. As Flipkart Minutes scales, Biswas said the biggest challenge is not investment or technology — but operational execution. Describing quick commerce as an 'hourly execution business,' Biswas — who previously co-founded and scaled Dunzo — said just-in-time supply chains demand constant coordination. 'It requires precision tooling, disciplined culture, and relentless focus,' he added.
