Quick-commerce 2024 adex wrap: Zepto, Blinkit, Swiggy Instamart spend heavily on advertising

Zepto spent Rs 303 crore on advertising in fiscal year 2024. In the previous year, Zepto shelled out Rs 215.82 crore on advertising and promotional activities

By  Storyboard18Dec 26, 2024 1:27 PM
Quick-commerce 2024 adex wrap: Zepto, Blinkit, Swiggy Instamart spend heavily on advertising
Quick commerce platforms like Zepto, Blinkit, and Swiggy Instamart have been experiencing a significant surge in their ad revenue.

Quick commerce has experienced extraordinary growth in India, with major players such as Zepto, Blinkit (owned by Zomato), and Swiggy Instamart making significant strides. These companies have successfully leveraged strategies like promoting high-ticket products, streamlining discount structures, expanding their network of dark stores, and optimizing brand portfolios. In response to the surge in demand, industry giants like Amazon, Flipkart, and Myntra have also entered the fray, aiming to provide customers with ultra-fast delivery.

Flipkart's quick delivery service, dubbed 'Minutes,' and Amazon's upcoming 'Tez'—set to launch by early next year—are emblematic of the growing focus on speed in e-commerce. Meanwhile, Magic, a hyper-local e-commerce player, has ventured into food delivery with the launch of 'magicNOW.'

To solidify their positions in this burgeoning market, quick commerce companies are pouring substantial resources into advertising and marketing. Zepto, for instance, allocated a staggering Rs 303 crore to advertising in fiscal year 2024, up from Rs 215.82 crore the previous year. The company’s advertising spend has helped push the quick commerce sector past Rs 1,000 crore in annualized ad revenue, averaging Rs 83 crore per month.

Zomato-owned Blinkit has also ramped up its marketing budget, spending Rs 191 crore in 2024. The company has reported over Rs 400 crore in advertising revenue and is projecting that figure to surpass Rs 1,000 crore in the current fiscal year.

While figures for Swiggy Instamart are not disclosed separately, its parent company, Swiggy, spent Rs 1,850 crore on advertising and promotions in 2024, according to PrivateCircle Research. The company’s founder has emphasized efforts to increase the proportion of advertising revenue within its overall income.

Meanwhile, BigBasket's quick delivery arm, BBNow, which has been operational for roughly two and a half years, shifted focus in the past year from slotted deliveries to a faster delivery model. The company invested Rs 385.12 crore in ads and promotions in 2023, reflecting the intensifying competition in this rapidly evolving space.

According to Redseer Strategy Consultants, the quick commerce market in India is projected to grow by 75-85% in fiscal year 2025, with a Gross Merchandise Value (GMV) of $6 billion. Monthly Transacting Users (MTUs) are expected to increase their spending by approximately 20%, driven by greater consumer trust and the growing habitual use of these platforms.

First Published on Dec 26, 2024 1:04 PM

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