Fast and Furious: Early startups adjust supply chain operations as they move to the fast commercial lane

Chennai-based snack company Sweet Karam Coffee has transformed its supply chain from a centralized fulfillment model to a regional hub-based setup to speed delivery.

Company co-founder Nalini Parthiban told us that we rationalize our SKU portfolio by based on performance, design satisfaction-friendly packaging, and keep logistics through smaller, more frequent dispatches. ” Mint.

Baker has built warehouses in all major cities over the past year, and in addition to centralized manufacturing plants in Ahmedabad, it also distributes products in areas with higher demand to ensure faster and faster trade.

“It’s a great channel for new-age consumer companies like us because it provides access in a larger way without having to set up bricks distributed offline in every place,” said Sneh Jain, founder of Baker’s Dozen.

Multiple replenishment

Fast trade (delivery available in just 10 minutes) thrives with speed and a concentrated product range. Companies such as Sweet Karam Coffee adjust their back-end operations, packaging lines and inventory management by leveraging technology and tailored processes. Parthiban said the company’s revenue has increased nearly six times over the past year, with about 50% of fast business revenue.

Tholsum Foods, which owns Slurrp Farm and Mille Products, has accelerated its procurement and production cycles to replenish inventory three times a week.

“We implement locally, manage smaller batches, and supplement the list multiple times a week to meet tight lead times. In contrast, our D2C and e-commerce channels rely on centralized fulfillment, allowing for broader classifications and larger packaging sizes,” explained Meghana Narayan, the company’s co-founder, in fact, adding 25.25 contributions to the past 25 range.

Fireside Ventures, an investor to these brands, said many of its portfolio companies have recorded huge growth through fast business channels over the past 6-9 months.

“For many of our brands, it’s easy to be the fastest growing channel and will soon be their biggest channel,” said Adarsh ​​Menon, an investment company operation partner.

He said Frubon, a dairy startup that already exists in general and modern trade, is actively building its fast business operations.

“We have rented other refrigerated vehicles to ensure better delivery in terms of delivery schedules and quality,” said Rahul Verma, co-founder of Frupin.

The company’s integrated supply chain includes purchasing raw milk directly from Rajasthan and establishing a manufacturing industry in Mahindra World City, Jaipur. He added that this end-to-end control ensures consistent production and controls overall costs.

Sauce is an investor in consumer startups across Truth Foods and Hocco, the company partner, said Yash Dholakia.

Quick Commerce provides several early-stage startups with the opportunity to interact with target customer bases in different geographies without increasing the cost of building their presence through their own stores or entities.

Earlier this month, Swiggy Instamart said it had expanded to 100 Indian cities to meet the growing demand for 10-minute delivery, especially in smaller cities such as Raipur, Siliguri, Jodhpur and Thanjavur, which highlights the growing prominence of fast commerce. Blinkit and Zepto have also expanded their presence.

Limited shelf space

While fast commerce offers a fast-growing opportunity, companies strive to build their business in a crowded market and strive to manage inventory in dark stores from there to deliver to consumers. They have to keep all kinds of products ready to ship by accurately predicting demand and figuring out the logistics of delivering them from warehouses to dark stores.

Frubon’s Verma said the cost difference comes from advertising/marketing spending that young brands must generate on the Q COM platform, which makes visibility an important aspect given the limited shelf space with general trade, adding that the channel contributes about 20% to its overall revenue.

Sauce’s Dholakia said the margin profile needs to be consistent with the rapid business requirements.

“Given the limited space and SKUs in the Dark Store, companies must make sure they can sell multiple units by order and optimize the value ratio.”

Companies usually eliminate 10-15% of their marketing budget on fast business, making it one of the most expensive distribution channels.

“When the difference between platforms is not very clear, players and brands have to keep spending more to get people to download the app and use it,” said Fireside’s Menon.

Several fast business giants have been charging customers additional fees in recent months as they strive to make a profit.

Menon added: “As this increases, there is a greater pressure on consumers to pay extra prices, and at some point I do want to gradually reduce or moderately utilize users of these services.”

Blume Ventures said in its 2025 report on its Indus Valley annual report that the $3 billion industry could face challenges. It noted that fast business companies may find challenges in maintaining growth momentum in the long term as they may face barriers to lower addressable markets in low-altitude total markets and reduce volume growth in lower total sales markets and increase competition, as well as increase competition.