Flipkart Minutes Could Add 1,000 Dark Stores By Mid-2027: UBS

Walmart-owned Flipkart’s quick commerce arm Minutes could add another 1,000 dark stores by mid-2027 or the Big Billion Days sale of 2027, according to a UBS report.

The brokerage, citing an industry expert, said the rollout would depend on the performance of individual markets and the development of supporting hubs and backend infrastructure.

If the expansion materialises, it would nearly double Minutes’ network to around 2,000 stores.

The projected expansion comes after Flipkart said in June that it had scaled Minutes to 1,000 micro-fulfilment centres across 130 cities and more than 8,000 pin codes. At the time, Flipkart Minutes head Kunal Gupta reportedly said the company planned to expand the network to 1,500 centres across 180 cities.

According to UBS, Minutes’ stores average 800-1,000 orders per day, while mature stores (those operational for five to six months) process around 1,200-1,500 orders daily.

Minutes is now being used to bring customers into the Flipkart ecosystem for fresh, beauty and personal care and other immediate-use categories. In locations where the service is available, around 40-45% of customers visiting Flipkart also visit Minutes, the brokerage firm added.

The expert also indicated that transactions per customer per quarter are rising as users consolidate more purchases within Flipkart.

Minutes Steps Up Consumption Game

Minutes’ net order value, excluding mobile phones, stands at ₹500-₹530, nearing Blinkit’s average net order value of ₹518 in Q1 FY27, the report said. Including mobile phones, Minutes’ order value is estimated to be higher than Blinkit’s, reflecting Flipkart’s strength in mobiles and electronics.

Metro cities currently account for around 60%-65% of demand on Minutes. The platform is also seeing traction in Kolkata and Tier II and III cities in eastern India, while south India is scaling rapidly.

In non-metro markets, Minutes operates across larger delivery areas as customers are more willing to accept delivery times of 25-30 minutes. UBS said Flipkart’s existing ecommerce customer base and regional demand data are helping it identify markets where rivals have a limited presence.

Minutes’ advertising revenue is broadly comparable with leading quick commerce platforms, while its gross margins are improving but remain below Blinkit’s. Its cost per order in most cities has also moved closer to Blinkit and Swiggy Instamart, though it is yet to match Blinkit’s operational efficiency.

Flipkart primarily manages Minutes’ dark stores itself but is increasingly using partners and franchisees for a smaller part of the network. Partners help secure locations, while Flipkart retains control over inventory, assortment, store design, and customer experience.

The ecommerce giant is also looking to widen the assortment on Minutes and move up the consumption ladder. In August, the quick-commerce arm entered the premium grocery and specialty food segment with its private-label brand Pykd, which will offer products ranging from cheese, coffee and kombucha to ramen, ghee and oils. 

The company is also looking to onboard third-party premium brands, with the offering initially being piloted in Bengaluru, competing with the likes of FirstClub, Blinkit Gourmet, and Swiggy Instamart’s Noice.

Quick Commerce Expansion Race Intensifies

This comes at a time when Amazon Now also announced plans to expand its fulfillment network to 300 cities, up from 100 cities it was targeting earlier this year. According to UBS, Amazon Now currently has around 500-600 dark stores and processes 4-5 Lakh orders daily. It could reach 1,000 stores by the end of 2026.

Amazon Now is currently available to over 5 Cr customers in more than 15 metro and non-metro cities such as Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, Amritsar, Kochi, among others.

While Zepto has put its IPO plans on hold, it had proposed using ₹1,629 Cr from the issue proceeds to set up 1,904 dark stores by FY30. Swiggy, meanwhile, has said Instamart’s existing network can support more than twice its current GOV. 

The expansion comes as quick commerce platforms move beyond groceries into electronics, beauty, fashion, medicines, and home products. India’s quick commerce market is expected to become a $40 Bn opportunity by 2030.

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