Tier-2 cities to triple food delivery transactions to 180M by FY26, Redseer says
A Redseer report shows Tier-2 cities driving India's next food delivery wave, with transactions rising from 60M in FY21 to 180M by FY26. Online delivery penetration is set to climb from 11% (FY26) to 18% (FY31) as the food services market grows from $90B to ~$150B by 2030, led by digital-first brands, cloud kitchens and premium beverages.
Redseer report shows Tier-2 cities driving India food delivery growth, transactions tripling to 180M by FY26. Online delivery share to reach 18% by FY31; digital-first brands, cloud kitchens and premium beverages lead expansion.
Why this matters
The Tier-2 delivery surge follows Swiggy's shift toward majority Indian ownership, with foreign holding dropping to 49.76%, as it works to unlock the Instamart inventory model amid expanding market opportunity.
Retail-company signals are accelerating, up 635600% QoQ.