India’s e-commerce industry recorded one of its most dynamic festive seasons yet, marking a 24% year-on-year rise in order volumes and a 23% surge in gross merchandise value (GMV) during Diwali 2025, data from Unicommerce revealed. The growth, powered by quick commerce and a wave of new digital shoppers from smaller towns, underscores the widening reach of India’s online retail economy.
Quick Commerce Leads Festive Charge
Quick commerce platforms emerged as this season’s biggest success story, witnessing a 120% year-on-year jump in order volumes. These 10–30 minute grocery and essentials delivery services became a fixture of festive shopping, catering to last-minute purchases and everyday convenience. Brand-owned websites also saw a strong 33% rise in orders, as consumers gravitated toward direct-to-consumer experiences, while marketplaces held their dominance with a 38% share of total online purchases.
Smaller Cities Steer the Growth
Tier II and III cities continued to be the main growth engines, contributing about 55% of total orders. Unicommerce data showed that Tier II cities posted a 28% increase in order volume, followed by Tier I hubs and metros at 24%, and Tier III towns at 23%. The surge highlights a structural shift in India’s consumer internet economy, as rural and non-metro buyers increasingly embrace online shopping. Studies also indicate that average order values rose over 32% compared to last year, reflecting increased purchasing power outside major urban centers.
Boom Across Key Categories
The standout product categories this festive season included FMCG, beauty and wellness, home décor, furniture, and health supplements. Fusion sweets, dry fruit assortments, and millet-based snacks saw record sales as consumers blended traditional celebrations with modern lifestyles.
Digital Momentum Driving 2026 Outlook
The 2025 Diwali sales have reaffirmed India’s position as one of the fastest-growing e-commerce markets globally. With robust logistics, deeper regional expansion, and rising consumer confidence, analysts expect sustained double-digit growth through 2026 as platforms tap into India’s next 400 million digital buyers.
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