Amid India’s booming quick commerce wave, Veeba founder and MD Viraj Bahl has emphasized that general trade (GT) — the country’s vast network of kirana stores — remains the most crucial and profitable channel for building a long-term FMCG brand.
Speaking at a fireside session with Huddle Ventures’ Ishaan Khosla during Inc42’s ‘The D2C & Retail Summit’, Bahl shared strong views on the overdependence of emerging brands on fast-growing platforms like Blinkit, Zepto, and Swiggy Instamart.
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“GT Is Where Real India Shops”
“GT is where you earn money. GT is where a brand is built,” said Bahl, flipping the current narrative where digital-first and D2C brands are rushing to establish themselves on quick commerce platforms. Despite Veeba’s strong performance across online platforms, Bahl made it clear that general trade remains the backbone of their business.
“Today, if you look at our revenue mix, around 70% of our revenue comes from GT. We love quick commerce. We serve them like crazy. But GT is where the real India shops, and GT is where real money is made,” he explained.
This insight sheds light on a key reality for Indian FMCG startups: scale and profitability are more likely to be found in traditional trade than in trendy, fast-delivery platforms — at least in the current phase of the market.
Quick Commerce: A Powerful Supplement, Not a Substitute
While the quick commerce sector in India is growing rapidly, thanks to evolving consumer behavior and demand for instant gratification, it is still not the primary revenue driver for most FMCG brands. For companies like Veeba, these platforms serve more as a visibility tool and convenience layer, rather than a foundation for profitability.
Quick commerce platforms can help with brand discovery and fast fulfillment in urban areas, but they often come with higher logistics costs, lower margins, and limited shelf space. In contrast, GT allows for wider geographic penetration, consistent sales, and better retailer relationships — all of which are essential for long-term growth.
Why General Trade Still Matters
General trade — through millions of kirana stores spread across urban and rural India — plays a crucial role in reaching middle- and lower-income segments, ensuring repeat purchases, and building brand loyalty. For FMCG brands, this traditional retail format provides:
- Higher volume of sales
- Better control on margins
- Deeper market penetration
- Sustainable growth
With more than 70% of India’s FMCG sales still coming from GT, founders looking to build scalable, profitable brands cannot afford to overlook this channel.
The Balanced Strategy for 2025 and Beyond
Viraj Bahl’s comments come as a reminder to D2C and FMCG founders to balance their distribution strategy. While digital and quick commerce platforms are important for urban consumers and brand positioning, the real revenue and scale lie in cracking general trade.
As Indian retail evolves, the winners will be those who master both — leveraging digital platforms for visibility and GT for volume.
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