India retail-tech firms scale stores, rapid delivery as market targets Rs 215 trillion by 2035
Eternal and Nykaa reported strong Q3 FY26 growth alongside network expansion. Nykaa reached 276 stores in 94 cities, while its B2B platform serves more than 4.8 lakh retailers across 1,100 cities; India’s retail market is projected to reach Rs 210-215 trillion by 2035.
What happened
Eternal (formerly Zomato) · India’s retail market could reach Rs 210-215 trillion by 2035, supporting retail-tech players. Eternal reported quick-commerce
Key facts
- India retail market projected at Rs 210-215 trillion by 2035, versus Rs 90-95 trillion in 2025
- Eternal Q3 FY26 revenue Rs 16,315 crore, up 201.9% YoY; net profit Rs 102 crore, up 102.9%
- Eternal added more than 200 net stores
- Nykaa Q3 FY26 revenue Rs 2,873 crore, up 27%; net profit Rs 68 crore, up 156%
- Nykaa gross margin 45.2%; EBITDA margin 8.0%
- Nykaa added 11 stores, reaching 276 stores across 94 cities
- Nykaa Now delivery promise: 30 minutes to 2 hours
- Nykaa B2B platform serves over 4.8 lakh retailers across 1,100 cities
Why this matters
Prioritize partnerships or acquisitions in last-mile logistics, store-enablement and B2B distribution, where integrated capabilities can strengthen omnichannel scale faster than organic buildouts.
What to watch
- Same-store sales growth and store-level EBITDA for Nykaa and comparable omnichannel retailers.
- Rapid-delivery order frequency, average order value, delivery fees and subsidy intensity in major metros.
- Growth in active B2B retailers, repeat ordering rates, credit adoption and private-label mix.
- Store openings versus closures across Tier 2 and Tier 3 cities, especially in beauty, grocery and pharmacy categories.
- Retail lease inflation, dark-store operating costs and last-mile labour costs.
- Policy changes affecting quick commerce, gig workers, marketplace practices, consumer data or inventory ownership.
- Evidence of consolidation: regional-chain acquisitions, B2B distributor partnerships or exits by cash-constrained retail-tech firms.
- Prioritise city clusters where stores, dark stores and B2B retailer density can share inventory and last-mile capacity.
- Treat physical outlets as service nodes for discovery, assisted selling, returns and pickup rather than only as standalone sales locations.
- Build retailer-facing credit, replenishment forecasting and private-label assortments to deepen B2B platform stickiness.
- Track contribution margin by city and fulfilment mode; slow expansion where rapid-delivery subsidies or store rents cannot be offset by repeat demand.
- Prepare for acquisition or partnership opportunities among regional chains, logistics providers and specialised B2B distributors facing higher technology and fulfilment costs.