Flipkart takes qcom battle beyond big cities

Plans 800 dark stores by year-end as it pursues Tier-II and Tier-III markets

- PEERZADA ABRAR

Flipkart is betting its quick-commerce future on India's smaller cities, targeting Tier-II and Tier-III markets that rivals have largely bypassed in their race to dominate metropolises.

The Walmart-owned e-retailer's 11-month-old "Flipkart Minutes" service is now live in 19 cities, including Ghaziabad, Guwahati, Jaipur, and Kanpur. Backed by an internal funding infusion of about 3,249 crore, the company aims to scale up to 800 dark stores by the end of the year, up from 400 currently.

The geographic strategy marks a strategic divergence from competitors prioritizing metro markets and affluent consumers. Flipkart's model is gaining traction: The company says the 10-minute delivery service is doubling in volume every 45 days.

That momentum comes as Flipkart attempts to close the gap with quick-commerce leaders. Blinkit currently operates 1,301 dark stores, followed by Swiggy Instamart with 1,021, and Zepto with more than 750.

"We are getting a very encouraging response," Hemant Badri, senior vice president and head of supply chain at Flipkart Group, told Business Standard. "Traction in these smaller cities has exceeded expectations. Flipkart's loyal customer base as well as new customers are trying it."