While quick commerce companies battle over faster deliveries and expand into smaller towns, a new breed of neighbourhood value supermarkets is quietly gaining ground by targeting consumers who prioritise affordability over speed.
Small-format grocery chains such as SuperK, Apna Mart, SAVOmart, 7xBasket and Grocery4u are expanding across cities and emerging markets by catering to households earning Rs 25,000-50,000 a month, offering a shopping experience that sits between a traditional kirana and a large supermarket. The model has also begun attracting investor interest as organised retail looks beyond premium urban consumers.
These stores, typically spread across 900-1,200 square feet, are designed for planned weekly and monthly grocery purchases rather than instant deliveries. Located in residential neighbourhoods, they promise transparent pricing, wider assortment and better merchandising without the delivery charges associated with quick commerce.
“Going to these supermarkets is an experience they enjoy. It is a family outing for many customers. Since it’s a small supermarket located in their own locality, they are not intimidated as they would be when they visit supermarkets in considerably posh localities,” said a former employee of a value supermarket.
Mid-Market Value
Industry executives say the format fills a gap that neither kiranas nor quick commerce has fully addressed. While kirana stores remain the preferred choice for emergency purchases because of familiarity and proximity, consumers are increasingly choosing different retail formats for different shopping missions.
“Kiranas continue to dominate emergency purchases because of proximity, familiarity, flexibility and personal relationships. However, when consumers make planned weekly or monthly purchases, value supermarkets offer clear advantages: transparent pricing, broader assortment, better merchandising and the perception of higher quality and consistency,” Mani Singhal, managing director and co-lead, consumer and retail practice at Alvarez & Marsal India, told FE.
Unlike quick commerce, where speed is the primary value proposition, neighbourhood supermarkets compete on savings. “For an urgent purchase, consumers may happily pay a small premium for delivery in 10 minutes. However, when purchasing a monthly grocery basket worth `2,500-5,000, saving 5-10% on the overall bill becomes much more meaningful than receiving the order immediately,” Singhal said.
The format is also proving attractive to investors. SuperK operates more than 130 stores across Andhra Pradesh and Telangana and has expanded into Karnataka. Apna Mart, launched in 2021, has built a network of more than 200 stores across Jharkhand, Chhattisgarh, West Bengal and Bihar, while SAVOmart, launched in 2024, has around 20 outlets.
Rising Investor Interest
Funding has followed the expansion. SAVOmart is backed by WestBridge Capital. SuperK raised about $12 million in a Series B round last year, while Apna Mart secured $25 million in a Series B funding round led by Fundamentum Partnership Fund and Accel, and is reportedly in talks to raise fresh capital.
Investors are betting that disciplined store economics rather than rapid expansion will determine the winners. The stores require investments of around Rs 10-20 lakh each and rely on high inventory turns, efficient sourcing and lower operating costs to protect margins.
“Importantly, these formats leverage data and supply chain efficiencies that allow them to negotiate better with suppliers and pass some of those savings on to customers,” Rishabh Singh, founder and managing partner at Aeravti Ventures, said. However, he added that maintaining low prices while scaling up will depend on procurement efficiencies, inventory management and disciplined execution, making operational excellence, rather than store count alone, the key differentiator.