Food safety regulators are stepping up checks at quick commerce firms’ warehouses amid increasing instances of violations and customer complaints, even as these firms continue to rapidly expand capacity, noted industry executives said.

Earlier this week, products of ice cream brand Yummo came under fire after a human finger was found in one of its packs.

The products of the brand have been removed from quick commerce platforms Blinkit and Zepto, till the investigation is completed. A senior quick commerce executive said Yummo products have been ‘delisted.’

Walko Foods, which owns the Yummo Brand, had said earlier that it has halted manufacturing at the third-party facility that made the product. The company has raised $20 million in February from Jungle Ventures, also sells ice creams under other brands such as NIC and Grameen Kulfi.

Robust measures

To ensure product quality in the realm of quick commerce, adopting robust measures throughout the supply chain is important, noted Chirag Taneja, Founder and CEO, GoKwik. “They should establish stringent vendor selection criteria, partnering only with reliable and trusted suppliers. Conducting thorough due diligence, including product testing and quality checks, before onboarding any vendors will also help bridge the gap between the quality of the product delivered and the speed of delivery. Implementing comprehensive quality control procedures is vital,” said Taneja.

Despite the challenges posed by recent quality violations, quick commerce still holds immense potential and is a significant part of the e-commerce landscape. It has the potential to grow exponentially, said an investor who did not wish to be named. “It is also worth noting that India is considerably a low-trust society, so it’s important for QC platforms to provide assurance to shoppers that these violations have been immediately addressed, worked on and rectified. Only when shoppers see the same in action, will their trust in these platforms rise and strengthen,” he noted.

Besides Zepto and Blinkit, Prosus-backed Swiggy’s Instamart and Tata Digital-backed Big Basket’s BB Now operate in the segment.

Recently, businessline reported that quick-commerce major Zepto is raising $660 million from existing and new investors at a valuation of $3.62 billion, according to people familiar with the development.

The round will see participation from new investors, including DST Global, Lightspeed Venture Partners, Avenir Growth, and marquee investor Anu Hariharan-backed Avra Capital, the sources added. Existing investors who are doubling down on their investments in Zepto include StepStone Group, Nexus Venture Partners and Glade Brook Capital.