From Transactions to Traditions: How Portfolio Expansion and Cultural Bundling Will Drive the Next Growth-Phase of Indian E-Commerce

India's e-commerce sector stands at a pivotal inflection point. According to a new BCG report released yesterday, the the Indian e-commerce market is currently worth $120–140 billion. It is on track to nearly double to $280–300 billion by 2030, fuelled by 440 million online shoppers (up from 300 million today), rapid rural penetration, and the explosive rise of quick commerce and connected formats.

Yet beneath the headline growth lies a stubborn reality: most pure-play operators remain deeply unprofitable despite years of aggressive scaling. The first wave of Indian e-commerce was defined by single-category dominance and frantic geographical expansion. The next wave, I argue, will be won by platforms that evolve into multi-experience conglomerates—blending high-frequency daily services with emotionally resonant, culturally attuned offerings. This is not speculation; it is already playing out in real time.

The Limits of Pure Geographical Expansion

For much of the past five years, the dominant playbook was simple: add cities, open more dark stores, subsidise deliveries, and chase Gross Merchandise Value (GMV) at all costs. Quick commerce, in particular, has delivered eye-watering growth—over 100% CAGR in several segments—pushing into 100+ non-megamopitan cities.

The numbers tell a sobering story, however. In Q3 FY26 (October–December 2025), Swiggy reported revenue of ₹6,149 crore, up 54% year-on-year, but its net loss widened 33% to ₹1,065 crore. The culprit? Its quick-commerce arm Instamart posted operating losses of ₹908 crore, up 57% YoY, as new dark stores and incentives eroded margins in lower-density markets.

Zepto, the fastest-growing pure quick-commerce player, saw FY25 revenue surge ~130% but still reported widening losses of over ₹3,300 crore. Even Flipkart, with its established marketplace, narrowed core losses in FY25 (marketplace revenue ₹20,493 crore, losses down 37% to ₹1,494 crore) but saw the broader entity post a widened ₹5,189 crore loss amid IPO preparations.

Geographical expansion alone hits structural ceilings. Outside the top 20–25 cities, order density drops, last-mile costs soar, and unit economics turn negative without a high-frequency anchor to spread fixed infrastructure costs. Investors, once mesmerised by GMV growth, now demand clear paths to contribution-margin positivity and group-level profitability. Pure geo-scale is table stakes; it is no longer sufficient.

The Portfolio Expansion Playbook: Lessons from Winners and Well-Positioned Contenders

The standout success is Eternal Ltd (the parent entity of Zomato and others). In Q3 FY26, the group delivered a consolidated net profit of ₹102 crore—up 73% YoY—on revenue of ₹16,315 crore (up 202%). Blinkit (the quick-commerce vertical) has become the growth engine, turning adjusted-EBITDA positive, while food delivery remains profitable and District (the “going-out” vertical) adds emotional stickiness. By rebranding as a conglomerate in 2025 and housing distinct but synergistic brands under one roof, Eternal created a powerful flywheel: daily high-frequency orders boost DAUs, shared dark stores improve logistics efficiency, and cross-sell data lifts lifetime value.

Flipkart is ideally placed to replicate and scale this model. With hundreds of millions of users, Walmart-backed supply-chain muscle, and over 800 operational dark stores under Flipkart Minutes, it already possesses the infrastructure. Its planned food-delivery pilot, slated for May/June 2026 (as reported a few days ago by Economic Times), is the logical next anchor.

According to me, three other players in this space have unique strengths that position them equally well to lead the portfolio era:

Amazon India possesses unmatched logistics density, Prime ecosystem loyalty, and early experiments in Fresh grocery and pharmacy. Its ability to layer services onto a mature marketplace gives it a ready flywheel.

JioMart (of Reliance Retail) leverages one of India’s largest physical retail footprints—18,000+ stores—for hyperlocal quick commerce already live in 1,000+ cities. Electronics, fashion, and grocery are being bundled into 10–30 minute deliveries, creating natural portfolio depth.

Tata BigBasket (under Tata Digital) have the Tata conglomerate's muscle for an aggressive quick-commerce push. It plans nationwide quick food-delivery by March 2026, integration with Croma for electronics, 1mg for pharmacy, and the Tata Neu super-app for unified experiences. Physical + digital capacity here is formidable.

These players understand what Eternal has proven: high-frequency services (food, grocery, quick commerce) subsidise and feed lower-frequency, higher-margin verticals (fashion, electronics, experiences). The physical world offers a mirror—Malls in 2025–26 are adding food courts, multiplexes, live events, and play zones not for rent alone, but to become full-day destinations. Digital platforms must do the same at national, personalised scale.

Creative Horizons: Bundling Culture and Bundling Life

The most exciting frontier goes beyond vertical add-ons to deep cultural and life-stage integration. In September 2025, I published a blogpost titled “Bundling Culture, Bundling Life”, where I argued that Indian consumers already pre-plan major spends around festivals and milestones—trains, sweets, banquet halls. Platforms that pre-curate and pre-deliver bundles around these moments can solve solve procurement bottlenecks, optimise logistics, and build profound loyalty.

Flipkart, Amazon, JioMart, and Tata BigBasket can turn this insight into a decisive advantage. Here are a few potential 'bundles':

Festival “Ready-to-Celebrate” Packs

Diwali kits with eco-friendly décor, LED lights, regional sweets (sourced via Minutes or BB Now), cleaning supplies, and guaranteed pre-peak delivery. AI personalises by family size, region, and budget. Bundle with food delivery for family feasts.

Life-Milestone Ecosystems

Wedding bundles (outfits, gifts, prepaid courier for invites) or housewarming kits (kitchen starters + quick-delivered essentials). Add in-app service bookings—makeup, photography, pandits—for a one-stop experience.

“Life Moments” Subscription

A ₹399–999 annual plan offering priority access, predictive nudges (“Anniversary in 10 days? Here’s a curated dinner + gift bundle”), and free quick deliveries.

Wellness & Everyday Care

Seasonal immunity kits, quick pharmacy, and personalised nutrition plans tied to purchase history.

Going-Out Experiences

Movie/concert tickets + outfit suggestions + bundled food delivery + hybrid mall tie-ups.

Regional/Local Artisan Spotlights

Pre-ordered festival crafts from small makers, giving predictable demand and emotional storytelling.

These bundles are not mere marketing — they create predictable demand waves that dramatically improve inventory planning and reduce cash/subsidy burn. They turn occasional shoppers into weekly ecosystem participants and position the platform as a cultural companion rather than a transactional checkout.

Risks and Execution Realities

E-commerce portfolio expansion is not risk-free. Adding verticals increases complexity, can dilute brand focus, and risks short-term margin pressure (as Swiggy’s Instamart drag illustrates). Cultural bundling carries the danger of over-commercialisation—festivals must feel authentic, not salesy. Data privacy, small-seller fairness, and accurate demand forecasting are non-negotiable guardrails.

The ideal first-step would be to start with pilots (Flipkart’s Bengaluru food entry is a textbook example), maintain transparent revenue-sharing with artisans, and phase rollouts using existing infrastructure. The evidence from Eternal shows that when executed with discipline, the rewards — group profitability, higher retention, multiple monetisation streams — far outweigh the risks.

Pure geographical expansion without portfolio expansion will increasingly look like yesterday’s strategy. The long-run winners will be those that own more of the consumer’s time, wallet, and emotions.

The Path Forward

India’s e-commerce story is shifting from “who can deliver fastest” to “who can anticipate and celebrate life best”. The $300 billion prize by 2030 will go to platforms that become digital lifestyle campuses—high-frequency utility anchors feeding aspirational discovery, all wrapped in cultural relevance.

Flipkart, Amazon India, JioMart, and Tata BigBasket each bring distinct superpowers. The one that moves fastest to bundle not just products, but traditions and life moments, will define the next decade of Indian consumption.

In a market racing toward 440 million digital shoppers, the most valuable real-estate will no longer be warehouses or dark stores. It will be the space inside a consumer’s cultural calendar—and the platforms wise enough to embed in it.