Startupedia

Instamart

Swiggy Instamart is an Indian quick commerce platform offering 10-minute delivery of groceries, essentials, electronics, apparel, and home appliances. Launched in August 2020 by Swiggy Limited, a leading food delivery platform, Instamart operates as a division under Swiggy’s parent entity. Headquartered in Bengaluru, Karnataka, it has expanded to over 100 cities across India by March 2025, leveraging a network of dark stores and megapods to serve millions of customers. Instamart is accessible via the Swiggy unified app and a standalone app launched in January 2025, competing with rivals like Blinkit and Zepto. In Q2 FY25, Instamart reported a gross order value (GOV) of ₹3382 crore, with a 75.5% year-on-year growth. [1][2]

Swiggy Instamart
Company typePrivate (Division of Swiggy Limited)
IndustryE-commerce, Quick commerce
FoundedAugust 2020; 4 years ago (2020-08)
FoundersSriharsha Majety • Nandan Reddy • Rahul Jaimini
Headquarters
Bengaluru
,
India
Area served
India
Key people
Amitesh Jha (CEO, Instamart) • Sriharsha Majety (Group CEO, Swiggy)
ProductsGroceries, Electronics, Apparel, Home appliances, Personal care
Services10-minute delivery, Swiggy Mall integration, Returns and exchanges
Revenue₹490 crore (Q2 FY25)
Number of employees
6000+ As of March 2025
ParentSwiggy Limited
Websitewww.swiggy.com/instamart

History

Swiggy Instamart was launched in August 2020 during the COVID-19 pandemic to address the growing demand for rapid grocery delivery. Initially rolled out in Gurgaon and Bengaluru, it expanded to 25 cities by 2021 and reached 100 cities by March 2025, including tier-2 and tier-3 cities like Raipur, Siliguri, and Thanjavur. [3][4] In 2021, Swiggy committed $700 million to scale Instamart, followed by additional funding led by Invesco in 2022. [5]

In April 2024, Swiggy integrated its online retail platform, Swiggy Mall, with Instamart, expanding its offerings to include non-grocery items like electronics and apparel. [6] The launch of a standalone Instamart app in January 2025 marked a strategic shift to enhance user access while maintaining integration with the Swiggy app. [1] Instamart’s growth has outpaced Swiggy’s food delivery business, with a 56% year-on-year GOV increase in Q1 FY25 compared to food delivery’s 14%. [7]

Products and Services

Swiggy Instamart offers over 50,000 products across more than 35 categories, including:

  • Groceries: Fresh produce, dairy, packaged foods, and staples like atta and oil.
  • Electronics: Smartphones, earphones, smartwatches, and home appliances.
  • Apparel and Footwear: Clothing, shoes, and accessories.
  • Home and Personal Care: Cleaning supplies, personal care products, and pet food.
  • Festive and Specialty Items: Gold coins, rakhis, and puja essentials.

Services include 10-minute delivery, enabled by dark stores and larger “megapods” (10,000–12,000 sq ft, housing up to 50,000 SKUs), and real-time inventory tracking. The integration of Swiggy Mall has broadened its retail scope, offering brands like HP, Puma, and Croma. Instamart’s loyalty programs, such as Swiggy One, One Lite, and One BLCK, apply across both the unified and standalone apps. [6][3] In 2024, notable orders included ₹8.3 lakh on gold coins in Ahmedabad and ₹15 lakh on pet food in Mumbai. [8]

Business Model

Instamart operates a dark store-based model, with strategically located warehouses ensuring rapid fulfillment. The introduction of megapods in 2025 tripled product availability compared to standard dark stores. Swiggy plans to double its dark store footprint to 4 million sq ft by March 2025, with 96 stores added in Q3 FY25 and 86 in January 2025 alone. [9] Instamart’s average order value (AOV) was ₹534 in Q3 FY25, surpassing food delivery’s ₹436, with advertising revenue growing 65% to ₹751 crore. [9] The platform operates on a variable commission model, with a contribution margin of -1.9% in Q2 FY25, aiming for break-even by Q3 FY26. [1]

Funding

Instamart’s growth is funded through Swiggy Limited’s capital raises and IPO proceeds. Key funding milestones include:

Swiggy Instamart Funding (via Swiggy Limited)
Date Round Amount Lead Investor Other Investors
January 2021 Series J $700 million Invesco Baron Capital, Sumeru Ventures
January 2022 Series K $700 million Invesco Alpha Wave Global, Qatar Investment Authority
November 2024 IPO ₹11300 crore Public Prosus, SoftBank, Invesco

[5][10]

Legal Entity Details

Instamart operates under Swiggy Limited’s legal entity:

  • Legal Name: Swiggy Limited
  • Foundation Date: July 31, 2014
  • Registrar of Companies (ROC): ROC Bangalore
  • Corporate Identification Number (CIN): U74140KA2014PLC075748
  • Registered Address: No. 55, Sy. No. 8-14, Ground Floor, I&J Block, Embassy Tech Village, Outer Ring Road, Devarbisanahalli, Bengaluru, Karnataka, 560103, India
  • Company Status: Active (Public, Listed on NSE and BSE) [11]

Reception and Challenges

Instamart has been recognized for its rapid growth, with 1.3–1.4 million daily orders in March 2025, contributing to the quick commerce sector’s 4.15–4.45 million daily orders. [12] Its 22% market share trails Blinkit (35%) and Zepto (31%). [13] Challenges include profitability, with losses widening to ₹799 crore in Q3 FY25 due to dark store expansions. [9] Instamart faced scrutiny for impacting local kirana stores, prompting government concerns in 2024. [14] FMCG distributors also filed a petition with the CCI in March 2025, alleging unfair pricing. [15]

References

  1. ↑ 1.0 1.1 1.2 "Swiggy Instamart expands to 75+ cities, unveils plans for standalone app". Business Standard. 2025-01-09. Retrieved 2025-05-08.
  2. ↑ "Swiggy bets big on quick commerce; expands Instamart to 100 cities". Fortune India. 2025-03-17. Retrieved 2025-05-08.
  3. ↑ 3.0 3.1 "Swiggy Instamart takes quick commerce to 100 cities". The New Indian Express. 2025-03-17. Retrieved 2025-05-08.
  4. ↑ @anujrathi (2020-08-28). "Bangalore, we're now live with Instamart at Swiggy". X. Retrieved 2025-05-08.
  5. ↑ 5.0 5.1 "Swiggy Instamart eyeing 100 million user base in next 4-5 years". Business Standard. 2022-10-19. Retrieved 2025-05-08.
  6. ↑ 6.0 6.1 "Swiggy Instamart will now deliver from 35+ categories in minutes with Swiggy Mall integration". Swiggy Diaries. 2024-04-18. Retrieved 2025-05-08.
  7. ↑ "Swiggy's quick commerce arm Instamart outpaces food delivery biz growth". Business Standard. 2024-09-27. Retrieved 2025-05-08.
  8. ↑ "From gold to gadgets and shot glasses: Key insights from Swiggy Instamart's 2024 quick commerce deliveries". CNBC TV18. 2024-12-26. Retrieved 2025-05-08.
  9. ↑ 9.0 9.1 9.2 "Quick commerce is a cash-guzzler, but Swiggy is unfazed". LiveMint. 2025-02-05. Retrieved 2025-05-08.
  10. ↑ "Swiggy IPO: Food delivery major raises Rs 11,300 crore". The Economic Times. 2024-11-06. Retrieved 2025-05-08.
  11. ↑ @TheMainstream7 (2025-05-05). "India's quick commerce arena has reached a fever pitch". X. Retrieved 2025-05-08.{{cite web}}: CS1 maint: numeric names: authors list (link)
  12. ↑ @Ravisutanjani (2025-05-05). "Market Share of Quick Commerce Apps". X. Retrieved 2025-05-08.
  13. ↑ @Ravisutanjani (2024-08-24). "Government Has Flagged Concerns Over The Surge of Quick Commerce Apps". X. Retrieved 2025-05-08.
  14. ↑ "FMCG distributors file petition with CCI against Blinkit, Zepto, Instamart". Business Standard. 2025-03-05. Retrieved 2025-05-08.

External links

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