As quick commerce becomes India’s next e-commerce battleground, Walmart-backed Flipkart said Wednesday that its Minutes service has built a network of 1,000 micro-fulfillment centers — small, strategically located warehouses designed to enable deliveries in minutes — less than two years after launch, a milestone Amazon is also targeting as it expands its fast-delivery business in the South Asian nation.

Flipkart said it plans to expand the network to 1,500 micro-fulfillment centers by the end of 2026, a rapid buildout that would further strengthen its position in India’s fiercely competitive quick-commerce sector, where Blinkit, Zepto, Swiggy Instamart, and Amazon are racing to add infrastructure and customers.

Based on current store counts and announced expansion plans, Flipkart could emerge as India’s second-largest quick-commerce network by micro-fulfillment center count, behind Blinkit, which operates 2,243 such centers, according to a recent note by Jefferies. Rivals Zepto and Swiggy Instamart are also expanding their networks.

India has emerged as one of the world’s fastest-growing quick-commerce markets, with companies racing to build networks that can deliver everything from groceries and beauty products to electronics in minutes. Blinkit, owned by food-delivery company Eternal, remains the market leader, while Zepto, Swiggy Instamart, Flipkart, and Amazon are investing heavily to expand their reach and win customers.

The competition has intensified in recent months as Amazon accelerates the rollout of Amazon Now, which is currently available in more than 15 cities and operates over 500 micro-fulfillment centers. The company plans to expand the service to 100 cities with more than 1,000 micro-fulfillment centers while broadening its assortment beyond groceries into categories such as apparel, electronics, and home products.

The shift is also showing up in shopping patterns on Flipkart Minutes, which launched in August 2024. Demand is increasingly coming from categories such as electronics, beauty, and personal care products rather than just groceries, Kunal Gupta, head of Flipkart Minutes, told TechCrunch. Orders on the platform have grown about 400% from a year earlier, while customer retention has increased 20% year-over-year, he said. Both figures come from the company and could not be independently verified.

“What began as a way to fulfill everyday essentials has evolved into a fundamentally new shopping habit for millions of Indians,” Gupta said. “Customers are not just ordering more; they are ordering differently.”

Flipkart said it has expanded Minutes to more than 130 cities and 8,000 postal codes, with growth increasingly coming from smaller cities beyond India’s largest metropolitan areas. Those markets recorded more than 4,000% growth from a year earlier, aided by expansion into 90 new cities, according to the company.

The trend, Gupta said, is visible in the pace at which newly launched markets are maturing. He cited cities such as Patna, Guwahati, and Siliguri as examples of where new stores are ramping up faster than expected, and described Lucknow as one of Flipkart Minutes’ best-performing markets despite the company not yet covering the entire city with its network.

Amazon is also betting on demand outside India’s largest cities. The company told TechCrunch that 70% of new Prime members come from smaller markets and that it remains on track to double its Prime membership base from 2023 levels by year-end. Amazon added that everyday essentials now account for one in every two units shipped on Amazon.in, with Amazon Now increasing shopping frequency among customers.

Gupta told TechCrunch that Flipkart is seeing customers use Minutes alongside its main e-commerce platform rather than as a replacement for it, driving more frequent purchases and helping expand into categories such as fresh produce and daily essentials. The company said average order values for fruits and vegetables rose 30% year-over-year.

Flipkart, Gupta said, plans to continue opening between 75 and 100 micro-fulfillment centers a month while expanding into additional cities across the country.

The rapid expansion by Flipkart and Amazon underscores how India has become a testing ground for the next phase of e-commerce, with companies racing to turn quick commerce from a grocery-delivery service into a broader shopping platform. The country already has more than 5,500 dark stores, according to Bernstein, and industry analysts expect that number to rise to about 7,500 by 2030 as companies expand into smaller cities and widen their product offerings.

“We will continue to expand rapidly, will not slow down after 1,000 stores as well, and we are going all in,” Gupta said.