Quick commerce success in India has led to new business models in food, fashion, and pharmacy.   Earlystage funds like Accel and India Quotient are investing in these startups.   Rapid fooddelivery...

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- Quick commerce success in India has led to new business models in food, fashion, and pharmacy. 
- Early-stage funds like Accel and India Quotient are investing in these startups. 
- Rapid food-delivery startup Swish has raised about $2 million from Accel. 
- Blitz, a network of dark stores, is building capabilities for consumer brands and discussing a follow-on round of Rs 50 crore with IvyCap. 
- Quick commerce has compelled ecommerce majors and brands to accelerate delivery.

Source: [The Arc](https://thearcweb.com/article/quick-commerce-boom-produces-blinkit-of-x-startups-funding-swish-blitz-sgDPGBITxTov8P8v)

Quick Commerce Boom Inspires New Startups in India

Journalist

Quick Commerce Boom Inspires New Startups in India- Grapevine

- Rapido, a ride-hailing unicorn, is exploring the quick commerce sector in India, competing with Blinkit, Swiggy Instamart, and Flipkart's Minutes.
- The Bengaluru-based company is in preliminary talks with Zepto and grocers like Pincode and KPN to strengthen its position in the market.
- Nexus Venture Partners, a common investor in Rapido and Zepto, is facilitating these discussions.
- Rapido recently became a unicorn, raising $200 million in its Series E funding round, led by WestBridge Capital.
- The company currently operates in over 100 cities, handling 2.5 million orders per day across bike taxis, autos, and cabs. 

 Source: [Inc42](https://inc42.com/buzz/flush-with-fresh-funds-rapido-seeks-to-ride-the-quick-commerce-wave/)

Rapido Eyes Quick Commerce Amid Fierce Competition

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While I'm proud of these two revolutionising the quick commerce space, I somehow have a bad feeling about this

Profits aren't coming, money is flowing
Don't know what the VCs are seeking?
Why bake a a pie that you can't eat later?

Too much money too soon, where have we seen that?

Consultant

https://economictimes.indiatimes.com/tech/technology/non-grocery-items-deliver-bright-growth-to-dark-stores/articleshow/109226337.cms

Quick commerce is fast evolving from a BigBasket/Kirana alternative to an Amazon alternative 💪🏻

Product Marketing Manager

Ken: Zepto is a bronze medallist acting like a gold medallist. Gazab beijjati hai 😂😂😂

Product Owner

All the naysayers who said this is ridiculous will slowly be proved wrong

This is BIG. Such bullishness on quick commerce.

Growth Manager

The Morning Vine 🍇

- Beauty retailer **Nykaa** has launched a 10-minute delivery pilot in Mumbai, while meat brand **Licious** is piloting 15-minute deliveries in Gurgaon. 
- This comes as quick commerce disrupts various product categories, pushing companies to speed up deliveries. 
- **Myntra** is also testing a 4-hour delivery plan in four cities. 
- Nykaa's move comes as beauty emerges as a top category on rapid delivery platforms like Blinkit and Zepto. 
- Meanwhile, large e-tailers like **Flipkart** and **Amazon** are also enhancing their quick commerce offerings.

Source: [Economic Times](https://economictimes.indiatimes.com/tech/technology/nykaa-licious-amp-up-quick-commerce-game-as-consumers-demand-instant-gratification/articleshow/114057656.cms?from=mdr)

Nykaa and Licious Speed Up Quick Commerce Amid Rising Consumer Demand

How long will Zepto go on with cash burning?

Software Developer

The Indian e-commerce giant Flipkart is planning to enter the quick-commerce business, aimed at providing customers with the convenience of receiving

India's Flipkart readies quick-commerce play | TechCrunch

Why existing companies barely succeed at new things... Flipkart finally woke up to the Q Commerce opportunity 😮‍💨

Product Manager

Ab ho gya na fundraise? What's the point of saying these things now. You are not listed. You have already raised close to $1bn. It's not like this is bringing new customers.
What's the point of all this PR now?
Why not focus on execution instead of saying things that will bite you in the ass in the future

Zepto - I don't understand

Business analyst

Zomato & Blinkit will be the largest B2C company in India at this level of user obsession!!

Passport size photos now on Blinkit 📷

Investor

Startups that we thought were dead, but are actually doing very good? (Lets bring some positivity here)

I had heard Waycool was also talking to raise at unicorn valuation, but they've fired like 300 people on Monday, so that's pretty uncertain. What to make of Zepto, though?

India's 109th unicorn?

Data scientist

VC here. Doing this for fun.
Don't take all views seriously.

Comment a startup's name, I'll share if it's promising or whatever I know

Analyst

We always doubt some. For me it was Zepto, never thought I’d see them here. But they’ve really managed to grow while Swiggy and Blinkit were around. 

Which other startups have surprised you by becoming big, despite all odds? Or despite not seeming like big opportunities for you?

Which Indian Startup/product has surprised you with how big it became?

Founder

- Zepto, an Indian instant delivery startup, has secured $340 million in a Series G round, valuing the company at $5 billion.
- The funding round, co-led by General Catalyst and Mars Growth Capital, brings Zepto's total fresh funding this year to nearly $1 billion.
- Competing with BlinkIt and Swiggy’s Instamart, Zepto is on track to generate over $1.5 billion in annualized sales.
- Quick-commerce services like Zepto are gaining traction in urban India, leveraging strategically located 'dark stores' to fulfill orders within minutes.
- Analysts note that quick-commerce firms in India are outperforming traditional e-commerce giants like Amazon, which has been slow to adapt to changing consumer habits. 

 Source: [Techcrunch](https://techcrunch.com/2024/08/13/zepto-hits-5b-valuation-as-quick-commerce-heats-up-in-india/)

Zepto Raises $340M at $5B Valuation Amidst India's Quick-Commerce Boom

Most of us are curious of how decisions are made in major VC funds, as these funds are private and only share this information with their Limited Partners (LPs).

For the unknown, there are VC funds known as Corporate Venture Capital funds, which are the venture arms of corporate firms; they are required to disclose the performance of their CVC funds to the general public.

Prosus, one of the largest funds in this category, has just released its 2024 Annual Report, so thought it would be helpful to share the key takeaways with you all. So, here we go:

1/ Swiggy: On the Launchpad
Swiggy continues to impress with a 26% surge in its gross order value and a robust user base that's grown to 104 million. The food delivery giant isn't just expanding—it's preparing to soar with a confidential IPO filing. Swiggy's blend of core deliveries and quick-commerce ventures positions it as a frontrunner in the food-tech race.

2/ Byju's: A Reality Check
The tides have turned for Byju’s, once a darling of the edtech world, now facing a stark reality with a $493 million valuation write-down by Prosus. This significant markdown is a wake-up call to the high-flying valuations in the edtech sector, spotlighting the need for sustainable financial health over speculative growth.

3/ PayU: Quietly Confident
While specific updates on PayU were sparse, its role in Prosus’s fintech ambitions remains pivotal. PayU continues to weave through Prosus's strategy, likely focusing on enlarging its digital payment solutions and tapping into burgeoning financial service opportunities in emerging markets.

4/ PharmEasy: Unsung Potential
PharmEasy's story remains under the radar in this year’s dispatch. However, as a component of Prosus's health tech ventures, it’s poised to play a crucial role in expanding accessible digital healthcare solutions, streamlining services from prescriptions to doorstep delivery.

The Bigger Picture? Prosus's strategy paints a vivid portrait of India's evolving startup ecosystem. It's no longer just about rapid growth and sky-high valuations. The game has changed:

1/ Sustainability is king: Byju's fall from grace is a stark reminder that financial health trumps speculative growth.
2/ IPO readiness matters: Swiggy's preparations show the market's appetite for well-prepared tech giants.
3/ Quiet expansion: PayU and PharmEasy's low-key presence suggests strategic focus on steady growth over flashy headlines.
4/ Diversification is key: Prosus's varied portfolio highlights the importance of spreading bets across sectors.

Checkout their annual report at https://www.prosus.com/~/media/Files/P/Prosus-CORP/AR2024/1latestfinancialresults/04annualreport/fy2024annualreport.pdf - happy reading!

Would you like more breakdowns of such reports and documents? Let us know in comments below 👇🏽

Key takeaways from Prosus 2024 Annual Report

- BigBasket plans to pivot entirely to quick commerce, offering only 10-30 minute deliveries
- Move aims to capitalize on growing 10-15 minute grocery delivery market
- BB Now already contributes over 50% of BigBasket's total revenue
- Company targeting $1.5 billion in sales this fiscal year, with quick commerce expected to make up 60%
- Shift comes as BigBasket eyes IPO in 2025 and aims for profitability 

 Source: [Entrackr](https://entrackr.com/2024/08/bigbasket-to-completely-pivot-quick-commerce/)

BigBasket to completely pivot to quick commerce

Prime example that one should not just study foreign markets and take everything else for granted.
The west already has much better convenience stores at every nook and corner. Something was different in India. 

Today BlinkIt eclipsed Zomato valuation. Instamart is a key focus for Swiggy. Zepto is on a great path.
All the VCs (except Nexus who backed Zepto) in India lost out in this race. They just looked at the west, and said it won't be possible. Grofers (Blinkit) & Zepto proved them wrong. 

For entrepreneurs: Do not be derailed by VC speak, they will hardly ever get big bets right.

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