Quick commerce platforms like Blinkit, Zepto and Swiggy Instamart are increasingly turning to advertising revenues to chart a path to profitability, as brands flock to these platforms to tap into a new category of urban, impulse-driven shoppers.

With millions of consumers using these platforms for everything from last-minute grocery top-ups to household essentials and even fashion, ad revenues are becoming a key lever for profit, say analysts. Despite grappling with high cash burn, quick commerce players are building a lucrative revenue stream by monetising their fast-growing user base through targeted advertising.

Quick commerce platforms are now generating an estimated `3,000-3,500 crore in annual recurring revenue (ARR) from advertisements, according to brokerage Elara Securities. Of this, Blinkit commands the lion’s share at 45%, followed by Zepto at 35% and Swiggy Instamart at 20%. In comparison, Amazon India’s ad revenue for FY24 stands at `6,700 crore, only twice as much, even though quick commerce accounts for just 8% of the country’s online shoppers.

The surge in ad revenue has been driven by a fundamental shift in consumer behaviour. “Quick commerce has evolved from being a channel for top-up buying to one supporting weekly and even monthly purchases,” said Nishant Shekhar, MD and partner at Boston Consulting Group (BCG). This change has opened the door for advertisers to reach consumers not only when they plan to buy but also in moments of unplanned, impulse-driven discovery.

This shift is particularly appealing to both established FMCG giants and new-age direct-to-consumer (D2C) brands. For smaller players, quick commerce offers an affordable and high-impact way to build visibility and test products in the market. Analysts said that smaller brands are, in fact, outpacing legacy players in terms of ad aggression on these platforms.

Abhishek Maiti, director at market intelligence firm 1Lattice, said that low-cost, fast-moving consumer goods remain the biggest driver of impulse buying on these platforms. “Major FMCG brands are seeing strong traction in quick commerce. Dabur, for instance, derived about 30% of its FY25 beverage sales from these platforms, while HUL’s ice cream sales via quick commerce accounted for around 10%,” he said.

The advertising formats themselves are becoming increasingly sophisticated. Beyond traditional search and banner placements, platforms are experimenting with checkout page ads, seasonal push notifications, post-order delivery tracking placements, and even physical pamphlets inserted into delivery bags. These hyper-targeted, real-time formats have helped drive up advertising rates significantly.

While ad revenues from quick commerce currently contribute about 2–4% of gross merchandise value (GMV), slightly lower than that of traditional e-commerce, cost-per-click rates are already on par with or even higher than Amazon’s, said Shekhar. Moreover, with ad margins running at 90–95%, advertising is emerging as one of the most profitable verticals for quick commerce players.
Categories such as household cleaning supplies, cookware, and wellness products are also seeing a spike in ad spends, underscoring the broadening appeal of these platforms.

Blinkit’s advertising revenue alone surged 220% year-on-year in Q3 FY24, more than double its 103% growth in gross order value, demonstrating how advertising is outpacing core business growth.

As these platforms continue to scale and chip away at traditional e-commerce’s market share, their influence on the digital ad landscape is only set to grow.