Festive season 2025: E-commerce sector grows 24% YoY, led by quick commerce; tier 2 cities shine 

The Diwali festive season in 2025 has wrapped up on a sparkling note for India’s e-commerce sector with a growth of 24% year-on-year (YoY) in order volumes. 

According to the commerce enablement SaaS platform Unicommerce, gross merchandise value (GMV) also surged 23% YoY this year. 

Quick commerce apps emerged as the biggest growth driver, with order volumes on the platforms recording a 120% YoY jump, followed by brand websites with a 33% rise. 

However, marketplaces remained the dominant channel for Diwali shopping, accounting for 38% of total purchases and recording an 8% YoY growth in order volumes.

The release by Unicommerce is based on over 150 million transactions processed through its flagship platform, Uniware, during the 25-day festive period in 2024 and 2025. 

"The 2025 Diwali festive season ended on a strong note for India's e-commerce sector, which recorded a 24% year-on-year (YoY) growth in order volumes and a 23% rise in gross merchandise value (GMV)," as per the Unicommerce release.

Festive season 2025

FMCG, driven by healthy food products like fusion sweets, dry fruit combos and millet namkeens, led the festive season growth, followed by home decor and furniture, beauty and wellness (led by makeup and hygiene) and health and pharma (fuelled by strong demand for supplements).

Further, tier II and tier III cities made up 55% of the total orders, highlighting the increased purchasing power in smaller towns supported by digital advancements. 

Region-wise, tier II cities led growth with a 28% YoY increase in orders, followed by larger cities at 24%, and tier III towns at 23%, reflecting widespread festive fervour across the country.

In regard to payment methods, prepaid orders grew 26%, depicting stronger trust in digital transactions. Moreover, Cash-on-Delivery (COD) orders climbed 22% in volume and 35% in GMV, indicating a shift toward higher-value COD purchases and deeper consumer confidence in e-commerce platforms.

"Further reinforcing this growth momentum, data from Unicommerce's logistics platform, Shipway, showed that orders were delivered faster this year, with average shipping times during the 2025 festive season 15% shorter than last year," it said.

This reflects an improvement in supply chain readiness, smarter demand forecasting and faster last-mile delivery, ensuring seamless and timely fulfilment even amid peak festive demand.