As one of the fastest growing e-commerce models, RedSeer latest report highlights quick commerce platforms such as Swiggy's Instamart, Dunzo, and more.

1. © 2021 RedSeer Consulting confidential and proprietary information
Bangalore. Delhi. Mumbai. Dubai. Singapore. New York
Solve. New
Quick-commerce: A $5 Bn Market by 2025
Market Report
July 2021

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© RedSeer
Key Themes of the Report
Online and Gen-Z customers have significantly higher affinity for Top-up and Unplanned
purchases
2
“Quick Commerce” model emerged to disrupt the Top-up and unplanned purchases
3
Top-up and Unplanned purchases account for two-third of India’s consumables spend
1
13% of the online transacting households are “Quick Commerce” addressable and they spend
USD 50 Bn on Top-up and unplanned purchases
4
“Quick Commerce” penetration within online consumables market is ~7% and is expected to
grow to 12-13% by 2025
5
Note (s): Quick commerce penetration to online consumables in 2025 is the base case forecast

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Top-up and Unplanned purchases account for two-third
of India’s consumables spend
1

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Consumables market in India is expected to become $~ 1 Tn by 2025
Consumables Spend
Per Capita (USD)B
437 557 531 670
As % of GDPB
25% 25% 27% 26%
As % of retailA
78% 75% 83% 62%
Indian Consumables Market Size & Growth(A)
USD Bn, CY 2016 – 2025 F
✓ Increasing willingness & ability
to pay premium for superior
quality products
✓ Growing market for easy-to-cook
foods and at-home delivery,
driven by increasing requirement
of convenient & hassle-free
experience
✓ Demand for healthy and
nutritional food & beverages, led
by stronger focus on healthy
lifestyles & fitness
✓ Rising consumption of newer
items through global experiences
(e.g. meat, cereals with
breakfast, beverages with meal
etc.)
Sources(s): A RedSeer IP; B. World Bank data
+x% Indicates CAGR
The consumables market saw a
dip in 2020, led by the reduction in
overall spending due to COVID
Growth Driver
578
753 725
985
2019
2016 2020 2025 F
+9%
-4%
+6%

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Indian Consumables GMV – Split by City and Income
In $ Bn, by %, CY 2020
Metro and Tier-1 cities would drive the market on the back of increasing spend by
mid to high income households; These households are convenience seeking and
spend across consumables categories
Note:
1.Exchange rate: 1 USD = 70 INR
Source(s): Primary Research, RedSeer Analysis
Mid to high income households of Metro and Tier 1 (Top 48)
cities occupy >50% of the market in Top 48 cities
Growth of Consumables in Metro & Tier 1 cities (Top 48 cities) – split by
income cohorts; In $ Bn, by %, CY 2020, 2021 F, 2025 F
44%
2020
5%
51%
5%
2019
52%
6%
43%
51%
44%
~$ 77 Bn
5%
2021 F
53%
42%
~$ 81 Bn
2025 F
~$ 72 Bn
~$ 113 Bn
-6% +12%
+9%
High growth in
2021 due to shift in
consumer spends
to in-house cooking
as dine-out was a
limited option in
cities due to COVID.
This segment is expected to grow at a CAGR of 9% from 2021-
2025 reaching ~$ 110 Bn by 2025
Tier-1
(Next 40 cities)
7.0%
Metro
(Top 8 cities)
3.2%
27.8%
7.7%
1.5%
39.0%
30.9%
19.9%
$ 48 Bn
47.2%
2.6%
8.6%
29.3%
31.4%
30.6%
13.4%
Tier 1
(Tier-2+)
$ 75 Bn $ 602 Bn
Growth driving
cohort -
High income
cohorts of
Metro & Tier 1
~$ 72 Bn
Consumables market in Metro and Tier 1
– Mid to High Income Cohort ( CY 2020)
~$ 113 Bn
Consumables market in Metro and Tier 1
– Mid to High Income Cohort (CY 2025)
$ 7500 - $ 15000
$0 - $2500 $ 300000 +
$ 2500 - $ 7500 $ 15000 - $ 300000 CAGR%,21-25
X%
10%
7%
12%

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Mid to high income cohort in Metro and Tier 1 cities show 3 main purchase
patterns
Stock-up Top-up Unplanned Purchase
Characteristics
• Recurring bulk purchases for long
term consumption
• Dominated by Hypermarkets,
Supermarkets, Online platforms
• Everyday consumable items
• Day to day utility driven purchases
(e.g. cooking)
• Mostly dominated by Kirana and
online platforms
• Purchase of consumables in limited
amounts as a top up to stock-up
purchases or for daily consumption
• Need / urge driven purchases
• Dominated by traditional Kirana
Frequency / Household
(Average Transaction
value)
Key Categories
(SKU size / transaction)
Sources(s): RedSeer IP and Analysis, Primary Research (IDI); N = 50
Indian Consumables Market - Typical Customer Use Cases
Mid-to higher income cohorts
75%
Once a month Buy as
per need
15%
Once in 2-
12 months
10% 15%
55%
30%
Everyday Once in
2 weeks
Once/Twice
in a week
70%
20%
Everyday Once/Twice
in a week
10%
Once in
2 weeks
5 - 10k
X Average Transaction value
(In INR)
~10k 2-10k 50-300 ~450 ~800 < 500 ~700 ~700
Fruits
(1.5-3 kg)
Vegetables
(1 kg)
Daily Dairy
(500 ml)
Eggs
(1 dozen)
Bread
(1-2 loafs)
Fruits
(500 g)
Packaged Food
(150 g)
Alcohol
(350ml – 1
L)
Tobacco
(1 pack)
Meat
(350-500 g)
Vegetables
(5 kg)
Daily Dairy
(0.5-2.5 L)
Beverages
(1.5 L)
Home Care
(850 ml +
misc.)
Packaged Food
(400 g)
Personal Care
(200-500 ml)
Staples
(5 kg)

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These consumers make top-up / unplanned purchases much more than the rest
of the country. The trend is fuelled by the shift in consumer preference for bite-sized
offerings & improved supply side facilities of Quick deliveries (few hours to ~2 days)
$ 72 Bn
~35-40%
~60-65%
~30%
Overall
~70%
Metro & Tier 1
(Top 48 cities)
$ 725 Bn
Consumables GMV in Metro & Tier 1 (Top 48 cities) –By Customer use case
In % and $ Bn, CY 2020
Sources(s): Census Data, RedSeer IP, Consumer surveys (Feb’20 – pre-COVID, Jun’20 – post COVID)
CAGR %, ’20-’25
6.5%
9%
X%
6%
7%
Stock-up Top-up & Unplanned purchase
Growth Drivers
Shift in consumer behaviour from value seeking to
convenience seeking has led to weekly, small sized
purchases compared to larger, monthly purchases
Big players like Big Basket, Grofers have reduced
delivery times, and helped in consumer education /
awareness about instant needs
Rise of instant delivery platforms like Dunzo, Swiggy
Instamart has allowed consumers to complete top-
up / unplanned (on-demand) purchases within an
hour of ordering

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India Consumables Market – by retail channel and city tiers
USD Bn, CY 2020
India Consumables Market – by retail channel
USD Bn, CY 2016, 2019 & 2020
In market currently dominated by unorganized channel, Organized retail has been
systematically gaining share in the market
3%
0.3%
94%
2019
0.5%
3%
8%
89%
2025 F
2020
97%
$ 724 Bn
$ 985 Bn
0.1%
$ 578 Bn
2016
$ 753 Bn
5%
5%
95%
+9%
-4%
+6%
Online Unorganized
(Kirana led)
Organized
B&M
5%
16%
52% 1%
Metro
0%
5%
∑ = $ 3.8 Bn
82%
3%
75%
16%
Tier 1
20%
99%
Tier 2+
$33 Bn
∑ = $ 21.3 Bn
∑ = $ 700 Bn
$51 Bn $641 Bn
CAGR %, ’20-’25
Sources(s): RedSeer IP

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Country
Overall Metro Tier-1
% share of
online
deliveries
0.5% 2.8% 1.8% 6% 4% 8%
Sources(s): RedSeer IP
~$ 0.7 Bn ~$ 1.2 Bn ~$ 2.0 Bn
~$ 3.8 Bn
2%
0
5
30
3%
35
0%
1%
2025
0.1%
3.0%
0.0%
2017 2018
0.5%
0.3%
2019 2020
~$ 30.5 Bn
Online Consumables market penetration
High Low
Online Consumables Delivery Market
CY 2020
India Online Consumables GMV & Penetration
USD Bn, CY 2017 – 2020, 2025 F
Online Consumables market penetration to grow exponentially in next 5 years to
become..be come $30+ Bn by 2025, ~50% of online market is expected to come
from Metro and Tier-1 cities
Share of metro & Tier 1
cities
75% 50%
Consumables Online GMV
Consumables Online penetration %
% online penetration –
metro & Tier 1 cities ~2% ~7%
Covid driven adoption towards
convenience has created a big surge in
online consumables purchase
Inconvenient offline transaction due to
poor transport, unavailability of selection
will lead to fast online GMV growth
Leading online grocery platforms have
been investing and optimising their
supply chain
Rise of instant delivery (TAT <45 Min)
platforms allowed consumers to get
unplanned consumables within an hour
of ordering creating a disruptive
alternative to Kiranas
Growth Drivers
Note (s): Consumables includes non-grocery categories like OTC medicines, tobacco etc.

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Quick Commerce
Traditional e-Grocers
Online Quick Commerce targets top-up purchases by solving Kirana inefficiencies
through instant delivery (TAT < 45 mins), convenience and reliability
Channels available for shopping consumables
CY 2020
Source(s): Primary Research, RedSeer Analysis
Offline
Channels
Online
Channels
Main Use Case
Customer Speaks
Stock-up Top-up Unplanned Purchase
Major
Presence
Metro, Tier 1 &
Bharat (tier 2+)
Metro & Tier 1
Metro & Tier 1
Metro
Major Value
Proposition
• Speed & Convenience
• Trust & familiarity
• Local relevant product
range
• Free home delivery:
Credit Purchase
• Discounts and offers
(Limited)
• Wider assortments
across categories and
fill-rates
• Convenience of ordering
• Doorstep delivery
• Discounts and offers
• Assortments across
category and fill-rates
• Enables on-demand
consumption
• Instant & doorstep
delivery
• Discounts and offers
• Assortment across
categories and fill rate
Target
Audience
• Local
neighbourhood
• Mainly
housewives and
old loyal
customers
• Variety seekers
• Discount seekers
• Shopping
experience
• Convenience
seekers
• Young
generation new
households
• Convenience
seekers
• Young generation
new households
• Mid to high income
cohorts
“I can order anytime via
phone call and my Kirana
delivers, also my husband
can just go and buy grocery
anytime required”
“I like the whole experience
of shopping grocery as I
see in the mart, lot of
options and brands are
available there”
“As a working mother I like
to spend my weekends
with my daughter, online
ordering grocery helps me
save time”
“”One morning milk didn’t
come on the scheduled
time so I ordered on
Dunzo. Since then, most of
my top-up groceries are
ordered here.”
Local Kirana
Modern Retail

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Online and Gen-Z customers have significantly higher
affinity for Top-up and Unplanned purchases
2

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Key Archetypes
Gen Z – Impulse purchasers Ambitious Millennials Gen X – Active Buyers Gen X – Passive Buyers
Description
• Youngsters living alone or
with friends
• Social media and experiment
driven purchase decisions.
Focus more on convenience.
• Matured professional living
alone or with spouse / friends
• Purchase decision driven by
product utility, quick and
convenient experience
• Typically, lives with spouse and
children
• Purchase decisions driven by
family aspirations and
convenience
• Typically, a joint family /
traditional nuclear family
• Purchase decisions driven by
family aspirations and value
(discounts)
Demo
graphics
Age
< 25 years 25 - 35 years 35 years + 45 years +
Profession
of HH
members
• Early Stage Professionals in
Banking, Consulting, IT etc.
• Students (with a lower pocket
money)
• Young Professionals in Banking,
Consulting, IT Services, etc.
• Startup founders
• VP / Director / Senior
Management in Banking,
Consulting, IT Services,
Medicine, etc.,
• Family business owners
• Director / GM / Senior
Management in SMBs
Income
INR 5 Lakh - 10 Lakh INR 10 Lakh - 25 Lakh INR 10 Lakh - 2 Crore INR 10 Lakh - 2 Crore
We identified 4 customer archetypes for consumables purchases in mid to high
income households within Metro & Tier 1 cities.
Key Archetype – Overall Consumables Purchase Behaviour (mid to high income HH)
Sources(s): RedSeer IP and Analysis, Primary Research (IDI); N = 50
1 2 3 4
Consumables
Purchase Behaviour
• Active online shopper with a
convenience first shopping
attitude
• Key factors considered while
shopping for consumables:
1. Speed of fulfilment
2. Convenience
3. Price / Discounts
• There is a rising shift towards
online channels for fresh and
staples on-demand and top-up.
• Key factors considered while
shopping for consumables:
1. Speed of fulfilment
2. Convenience
3. Product quality
• Has a mixed purchase pattern
between Kirana stores, Super
mart and online platforms.
• Key factors considered while
shopping for consumables:
1. Convenience
2. Product quality
3. Assortments
• Shop from supermarkets and
Kiranas due to low tech
adoption & high trust on kirana.
• Key factors considered while
shopping for consumables:
1. Price / Discounts
2. Product quality
3. Assortments

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Key Archetypes
Gen Z – Impulse purchasers Ambitious Millennials Gen X – Active Buyers Gen X – Passive Buyers
Wallet Analysis
(Overall)
Expected increase in
unplanned purchases
(2020 – 2025)
High shift expected with the improvement in on-demand online consumables penetration
(Delivery speed and order convenience being the key criteria for benchmarking performance)
Moderate shift expected with
the shift in customer mindset
Gen Z- Impulse Purchasers & Ambitious Millennials dominate in unplanned
purchases and their fulfilment methods are based on speed and convenience…
Note(s): Numbers are indicative
~30%
~65%
~5%
Stock-up
Unplanned purchase Top-up
~40% ~40% ~20%
~30% ~40% ~30% ~72%
~15%
~13%
Female Male Female Male
Snacks, Beverages
are key items with
little spend on
fresh / staples
Higher share of
staples and
fresh purchase
in females.
Male Female
Higher unplanned
spends on snacks,
alcohol and
cigarettes.
Male Female
Males enable HH purchases
of unplanned grocery. Stock-
ups are done by the house
help / males order it online.
Females enable HH
purchase. Grocery
stock-ups / Planned
top-ups are
relatively higher in
such HH.
1 2 3 4
Sources(s): RedSeer IP and Analysis, Primary Research (IDI); N = 50
Key Archetype – Wallet Analysis (mid to high income HH)

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Consumer behavior is shifting towards a higher share of top-up/unplanned
purchases
Key Archetypes
Gen Z – Impulse purchasers Ambitious Millennials Gen X – Active Buyers Gen X – Passive Buyers
Willingness
to try online
deliveries
Metro High Very High Moderate – high Low
Tier 1 Moderate – high Moderate – high Moderate Low
Top up
spends
online
Metro ~ INR 5k / month ~ INR 8k / month ~ INR 6k / month < INR 2.5k / month
Tier 1 ~ INR 4k / month ~ INR 7k / month ~ INR 3.5 k / month < INR 1.5k / month
Online
grocery
purchase
use case
Stock-up
Top-up
Unplanned
Purchases
Customer Speaks
.I don’t have to plan on what I want;
everything is instant. I get to explore
new instant noodles which otherwise
I wouldn’t have heard of, that too
without stepping out..
We are quite satisfied with the online
services. I like the scheduled option very
much and its so punctual. My wife was
worried about the quality of veggies, but
she was happy when they got it.
We have been purchasing almost
everything online especially after the
pandemic. What we really like is the
convenience of getting everything on
our door step. We have started using
online apps for most purchases
Because I know the shopkeepers, I
have trust. They give me offers and
best quality materials. I also like
walking to nearby kiranas, meeting
people. I think I won’t get same trust
feel, personal connection, and quality
with online. Also, I am not tech savvy.
Archetype Attractiveness
High Low
Online purchases are
mostly top-up/unplanned
with increasing unplanned
purchases
Online purchases are
mostly top-up with a trend
towards unplanned
purchase
Online purchases are a mix of
stock-up and top-up purchases
at present with fast growth of
unplanned / emergency
purchase behaviour
Online purchases are rare and
mostly unplanned with future
potential for top-up purchases.
Arrows signify future change of use-case
Key Archetype – Online Consumables Purchase Behaviour
Sources(s): RedSeer IP and Analysis, Primary Research (IDI); N = 50
Quick Commerce
Value Prop
Attractive cohort Attractive cohort Attractive cohort Low attractiveness
1 2 3 4

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Purchase trend of Unplanned Consumables – Next 12 months
N = 706
Purchase trend of Unplanned Consumables – Past 12 months
N = 706
Customers increased their unplanned consumables purchases in last 12 months
and are inclined to further increase their unplanned purchases in future
28% 26% 29%
33%
28%
35%
30%
39%
27%
6% 7%
6%
N= 706
Age
< 25 years
2%
Overall
2%
1%
Age
> 25 years
N= 152 N= 554
Sources(s): Consumer surveys (June ’21)
Q. Have your unplanned consumables purchases increased in COVID lockdown (last 12
months) ?
Q. How would your unplanned consumables purchases change in next 12 months?
33% 30%
34%
40%
37%
41%
27%
33%
25%
N= 152
Overall Age
< 25 years
Age
> 25 years
N= 706 N= 554
Significantly increase
Decrease
Increase
Remain same Significantly decrease
• 61% customers suggest
that their unplanned
consumables purchase
would increase in the next
12 months.
• This shift of trend is realized
due to:
– Shift in consumer habits
due to lockdown (orders
for cravings / snacks &
beverages have
increased)
– The rising speed and
convenience brought by
on-demand platforms.
• 73% customers
suggest that
their unplanned
consumables
purchase has
increased in the
past 12 months.

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Q. What are the top reasons for getting your unplanned purchases online?
Parameters to prefer online mode for unplanned purchases
Ranking, N = 166
Primary mode of unplanned purchase
N = 706
Customers make unplanned purchases across retail channels. For customers
making unplanned purchase online, convenience of ordering and speed of delivery
are the most important criteria
Sources(s): Consumer surveys (June ’21)
Top 2 parameters
53% 50% 54%
28%
29%
17%
19% 21%
30%
Overall Age
< 25
Years
Age
> 25
Years
N= 152
Mom-n-pop
stores
Supermarkets
N= 706
Online
N= 554
Q. Where do you get most of your unplanned purchases from?
59%
41%
23% 21%
15% 13% 12%
24%
36%
31% 37%
39% 42%
26%
17%
23%
46%
42% 46% 45%
62%
Rank 3
Assortment
and
selection of
products
Doorstep
delivery
Speed
Rank 2
Convenience Multiple
payment
options
Price and
discounts
Reliability
Rank 1
N= 103 N= 108 N= 13 N= 86 N= 59 N= 31 N= 34
>50% customers feel
convenience, speed and
price / discounts are the
most important reasons
to prefer online channel
for purchase.
Note (s): Customer research was conducted in Mid-to-high income household in Bengaluru, Delhi and Mumbai

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“Online Quick Commerce” model emerged to disrupt the
Top-up and unplanned purchases
3

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Evolution of Indian Consumables Market – By Fulfilment Channels
Metro and Tier-1
With increasing prevalence of top-up and unplanned purchases in metro and Tier-1,
convenience and speed of delivery have become important; super-specialized
platforms have emerged to offer convenience and instant deliveries
Timeline » Till 2016 2016 – 2020 ~2020 onwards
Offline Commerce
Till 2016, consumables retailing
was mostly through Kirana
stores, with supermarkets as a
rising trend.
Traditional e-Grocers
Driven by internet penetration and
eCommerce, consumables deliveries
via online platforms saw fast
adoption in Metro & Tier-1
Online Quick Commerce
Shift in consumer preference for
instant delivery of Top-up purchases
and convenience created - Online
Quick Commerce
Customer Behaviour Value / Discount seeking behaviour Convenience seeking behaviour
Key Players servicing
the market
Performance across key parameters
Customer Experience
• Personalized deal offerings
(two-way negotiation)
• Standardized discounts
• Website first approach
• Simpler user journey
• Smartphone first approach
Product Selection • Manage ~3,000-20,000 SKUs • Manage ~100,000 + SKUs
• Manage focused set of 1500-2500
SKUs
Type of Fulfillment
• Self owned stores (~2,500
Sq.ft.)
• Large warehouses (~40,000 Sq.ft.)
• Micro Fulfilment Centers (~1500-
2,500 Sq.ft. each)
Fulfilment Time Self paced pick-ups 2 hours to 3 days Instant (20-45 mins)
Kirana
Sources(s): Primary Research, RedSeer Analysis
Off-shops
Convenience
stores

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Quick Commerce provides more convenience to customers with its curated
selection of products, instant and doorstep delivery,. - Unlike traditional e-Grocers, Quick
Commerce platforms have Simple UI and Instant delivery
Customer Journey –Traditional e-Grocers vs Quick Commerce
Quick Commerce
Traditional e-Grocers
• Planned monthly /
weekly stocking-
up
• Unplanned urgent
consumption
• Routine daily/
weekly needs
• Additional
purchase after
stocking-up
• Directly opens
preferred app to
purchase
• Searches multiple
websites and
apps for deals
• No additional deal
discovery activity
required for the
goal-oriented
customer
• Multiple deal
discovery and
variety offerings
• Completes payment;
• Searches coupons
• AOV ~ $ 12 - 15
• Completes payment;
• AOV ~ $ 6
• Orders flow from centralized
warehouses to customers
• Delivery Time: 6 hrs. – 2 days
• Low reliability on timelines
• Orders flow from mini-
warehouse / MFCs in
neighborhood or local Kirana to
customers
• Delivery Time: 20-45 mins
• High reliability on timelines
Simpler user experience in
Quick Commerce
Faster product delivery in Quick Commerce owing
to the Micro-Fulfilment Center based model
Sources(s): Primary Research, RedSeer Analysis

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13% of the online transacting households are “Quick
Commerce” addressable and they spend USD 50 Bn on
Top-up and unplanned purchases
4

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Sources(s): RedSeer IP & Analysis, Consumer surveys (Feb’20 – pre-COVID, Jun’20 – post COVID)
123.0
11.0
20.0
154.0
31.0
USD 2450 / Year /
HH
USD 49 Bn
Quick Commerce TAM
Quick Commerce- Addressable Households
CY 2020 and 2025, Number of Households, Mn, N=2752 (consumer survey)
~20 million households are addressable by quick commerce in India with an
estimated addressable market size of USD~50 Bn in 2020
Demand-side drivers
▪ Growing number of unplanned purchases in
urban households
▪ Shifting consumer preference towards
convenience and instant deliveries
▪ Generational habits shifting (Millennials to
Gen Z) towards shorter purchases and need
for quick, on-demand services
Supply-side drivers
▪ Increasing serviceability of quick-commerce
in metro and tier-1 cities through multiple
micro fulfilment centers
▪ Growing selection and assortments by
multiple brand partnerships
185.0
Online
Transacting
11.0
Transacting
HH
in Tier 2+
cities
Transacting
HH in Metro
& Tier 1
Metro & T1
HH
earning < $
7500 p.a.
26.0
Online Quick
Commerce
Addressable
HH
222.0
37.0
USD 2800 / Year /
HH
USD 77 Bn
Quick Commerce TAM
Note (s): Addressable market for Quick Commerce comprise of top-up and unplanned purchases of consumables by Mid-to high income households in Metro and Tier-1 cities

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“Quick Commerce” penetration within online
consumables market is ~7% and is expected to grow to
12-13% by 2025
5
Note (s): Quick commerce penetration to online consumables in 2025 is the base case forecast

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Online Quick Commerce Market GMV and Forecast
In CY, For CY2020-2025E, By Scenario
Quick-commerce market penetration is estimated at USD ~0.3 Bn in CY2021 and
is expected to grow to 10 to 17x in next 5 years
CY2020 CY2021
~ 3.1 Bn
~ 1.5 Bn
~ 0.8 Bn
CY2025E
~ 0.1 Bn
~ 0.3 Bn
~ 5.3 Bn
+133%
Conservative
Scenario
Base
Case
Aggressive
Case
Source (s): Expert discussion, Desk Research, RedSeer IP and RedSeer Analysis
Note (s):
1. 2021 GMV has been estimated on May’21 run rate of GMV for top 2 players in quick commerce market
2. Quick commerce has been estimated top-down based on 1). penetration of quick-commerce on overall online consumables market, and 2). China benchmarks for online on-demand grocery
penetration total online grocery market
+..%
CAGR % (2021-
25E)
2.6% 6.7% 10 to 17.5%
Quick Commerce (%
penetration of online
consumables)
X%
Market growth will be driven by rising
adoption of quick-commerce among
convenience seeking and customers
with unplanned ordering behavior
COVID led change in purchase behavior
will promote growth quick commerce as
replacement of Kirana purchase
Expansion to multiple cities in Metro
and T-1 (top48 cities)
from current level of 6 cities
Growth Drivers

24. Appendix

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Glossary of terms used in the document (1/2)
Terms Used Definition
Metro • Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune
Tier -1 • Cities other than Metros and with population above 1Million
Tier -2+ • Cities, Towns, urban establishments with population less than 1 Million
Consumables
• Includes core grocery categories (Fresh, Staples, Packaged Foods, Beverages, Home Care and Personal Care),
and Other Consumables (OTC, Alcohol, Tobacco and Pet supplies)
Online retail • E-commerce or e-tail including buying or selling of products online mainly through websites or apps.
Quick Commerce • Online purchase of consumables that gets delivered within 50 minutes
Organized Offline retail / B&M
• Larger branded stores selling a wide assortment of products ranging from Food & grocery to fashion and BPC
Includes formats like discount stores, supermarkets, hypermarkets to specialty chains.
Unorganized retail
• Products being sold through Kirana stores aka Mom & pop stores and pop-up stores like Paan, beedi (Indian
cigarette) shops.
Kirana • Mom & pop stores & and pop-up stores – Category B, C & D retailers (< or = USD 30K monthly GMV)
Stock-up • Purchases for stocking up of consumables and typically done on monthly basis
Top-up • Consumable purchases typically made to replenish/ supplement stock-ups
Unplanned Purchases • Consumables purchase typically made at the last moment / emergencies situations
GMV • Gross merchandise value
CY • Calendar Year (Jan-Dec)
FY • From 1-April to 31-March the following year
CAGR • Compound annual growth rate
INR • Indian Rupee
USD/ INR • Indian rupee(I USD = INR 70 – Average conversion rate for CY 19)

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Boundary Conditions
Approach for TAM: To estimate the total addressable market for Quick Commerce,
we look at 4 key levers – Reach, Access, Affordability and Non Stock-up spend
Reach
Access
We look at households in the top 47 cities
in India as serviceable cities for Quick
Commerce
We filter the households with internet
access
Total addressable
market 2020
Note(s):
1. Households with annual disposable income less than USD 7500 have not been considered for
Quick Commerce addressable market as their behaviour is more towards value/ discount
seeking
2. HH refers to households
Affordability
Households having average annual
disposable household income more than
US $7500 1
Metro
Tier 1 40
8
City-Tier No. of cities
7
13
#Mn HH2
~49 Bn USD
20 Mn + Households
Share of the consumables wallet spent on
non-stock up purchases in a HH
Non Stock-up
spend
Sources(s): RedSeer IP & Analysis, Expert Discussions
~200 USD
Monthly Consumables HH Spends

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