Flipkart Aims to Cut Costs by Slowing ‘Minutes’ Expansion Ahead of IPO

Flipkart, owned by Walmart, has decided to slow down the expansion of its quick commerce service, Flipkart Minutes. This move comes as the company looks to reduce rising costs, as reported by Inc42. The company is burning nearly $40 million every month, and it wants to cut that down.

Earlier, Flipkart planned to open 800 dark stores across India by the end of 2025. But now, the company has revised that number and will open only 500 to 550 dark stores by October 2025. These stores will mostly be in large cities like Delhi NCR, Mumbai, and Bengaluru.

Focus on Top Cities to Drive Growth

Currently, Flipkart Minutes operates in 14 cities with over 300 dark stores. With the new plan, the company wants to add 200–250 more stores across the country. This expansion will align with its popular annual sale, the Big Billion Days, which usually brings in high traffic and sales.

A source said, “More than 90% of the quick commerce volumes are generated from the top eight cities, and a bulk of this comes from Delhi NCR, Mumbai, and Bengaluru, where Flipkart is going deeper with Minutes.”

This means that instead of spreading too thin, Flipkart is now focusing on expanding in areas where the demand is already strong. These top cities generate most of the orders in the quick commerce segment.

This change in strategy also matches the approach of some of its competitors, like Swiggy Instamart that has also slowed down its expansion to control costs. On the other hand, rivals like Blinkit and Zepto are continuing to grow quickly. Blinkit now runs more than 1,000 dark stores across India.

Cost Control and Strategic Shifts Before IPO

Flipkart is making several changes as it prepares for its initial public offering (IPO) in 2026. One major step is shifting its legal base from Singapore to India with which, the company’s financials are also showing improvement. In FY24, revenue from Flipkart Internet rose by 21% year-on-year to ₹17,907.3 crore. At the same time, the company’s losses dropped by 41%, reaching ₹2,358 crore.

Despite slowing down expansion, Flipkart is not sitting still as it continues to build other strong partnerships. In April, the company tied up with Alcatel, a French smartphone brand, being sold through Flipkart and via Flipkart Minutes.

This deal is important because it shows that Flipkart still wants to grow its quick commerce offerings in unique ways. However, this also puts the company under scrutiny as the Competition Commission of India (CCI) is closely watching deals like these. Flipkart has already faced questions over exclusive launches with brands such as Samsung and Xiaomi.

India’s QSR brands are expanding fast and are expected to reach $40 billion by 2030. In 2024 alone, two-thirds of all online grocery orders came from quick commerce platforms.

The strategy makes sense as the company heads toward its IPO and it needs to show investors that it can manage its money well and grow steadily. Flipkart’s decision to limit Flipkart Minutes’ expansion is about balance. The company wants to serve more customers, but it also wants to keep costs under control. By focusing on major cities and improving its financial performance, Flipkart is preparing for a strong entry into the public market.