India’s fast-growing quick-commerce sector, which saw massive expansion in recent years, is now being closely watched by multiple regulatory bodies.
Quick-commerce platforms such as Blinkit and Zepto have come under the scanner for issues ranging from food safety and hygiene to misleading mobile application designs and pricing practices. Regulatory actions are beginning to shape the next phase of this sector’s growth story.
India’s quick-commerce or qcom segment has seen extraordinary growth over a short period. According to a report by Blume Ventures, the gross order value in this space jumped from $300 million in FY22 to an expected $7.1 billion in FY25. This represents a 24 times increase, with the number of users also doubling during this time.
Companies like Blinkit and Zepto have been leading this growth, expanding their presence through dark stores across key urban centres. Blinkit, for instance, had 1,301 dark stores as per its Q4FY25 update and has plans to increase that number to 2,000 by the end of 2025. Zepto operates more than 900 dark stores.
However, this breakneck expansion has not gone unnoticed by traditional retail networks and government regulators.
The All India Consumer Products Distributors Federation (AICPDF), the country’s largest body representing traditional retail distributors, has raised serious concerns. The Federation has alleged that quick-commerce platforms are engaging in anti-competitive practices that hurt small retailers and kirana stores.
According to Dhairyashil Patil, the National President of AICPDF, traditional distribution volumes have dropped by 10% to 15% across India and up to 25% in metro and Tier I and Tier II cities. The Federation believes that the expansion of Q-com platforms has triggered this shift in consumer behaviour, impacting offline sales in major urban markets.
These allegations have led to a preliminary investigation by the Competition Commission of India (CCI), marking the first time India’s competition watchdog is formally probing practices within the quick-commerce industry.
Separate from the competition probe, food safety regulators have also initiated strict inspections on the ground. The Maharashtra Food and Drug Administration (FDA) recently revoked the food business licence of Blinkit’s dark store located in Pune’s Balewadi region. The revocation followed findings of regulatory violations, including the storage and sale of food products without valid documentation.
In another case, the FDA ordered Zepto to suspend operations temporarily at its Dharavi facility in Mumbai. The inspection revealed fungal contamination on food items, improper cold storage conditions, poor stock management, and unsanitary flooring. Both companies have since resumed operations after submitting the necessary documents and addressing the raised issues.
Read More: Zepto IPO Filing 2025 on Track: No Delay Despite FDA Suspension!
The Central Consumer Protection Authority (CCPA) has also taken a proactive stance. In June 2025, the CCPA issued advisories to more than 50 online platforms, including Q-com firms, warning them against the use of dark patterns. These are deceptive user interface practices designed to manipulate consumer behaviour, such as false urgency, hidden fees, or disguised advertisements.
The authority has given platforms a three-month window to conduct internal audits and remove such practices. Failure to comply may lead to legal action and further erosion of consumer trust.
The convergence of regulatory attention from multiple authorities, including the CCI, FDA, and CCPA, has brought the quick-commerce industry to a crucial inflection point. While the sector continues to experience high consumer adoption and investor interest. But it also has to ensure safety, fairness, and transparency.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 25, 2025, 3:34 PM IST
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