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Tag: Swiggy Instamart

  • Reliance Expands JioMart Quick Delivery Service to 1,000 Cities Across India

    JioMart, the digital commerce division of Reliance Retail Ventures Limited (RRVL), announced on October 17 that it had extended “quick” deliveries to over 1,000 cities. Alongside its Q2 FY26 results, RRVL released a statement stating that its “quick” delivery operations now cover more than 5,000 pincodes overall.

    JioMart’s approach to rapid commerce involves orders being delivered in less than 30 minutes, in contrast to competitors like Blinkit, Instamart, and Zepto that deliver within 10 minutes. With operations spanning 5,000 pin codes and served by over 3,000 outlets in more than 1,000 locations, JioMart is the fastest-growing quick hyper-local commerce platform, according to a statement from RRVL.

    Based on this, the conglomerate reported that JioMart’s average daily orders for its 30-minute delivery service increased by 200%+ YoY and 42% QoQ. According to JioMart, the platform’s seller base increased 20% YoY during the reviewed quarter, and it attracted 58 lakh new customers overall in Q2 FY26, up 120% QoQ.

    Ajio Rush Launches 4-Hour Online Apparel Delivery Services

    JioMart reported that AJIO Rush, its newly introduced four-hour online clothing delivery service, is currently available in 300 pincodes. The business also stated that “AJIO Rush gained significant traction and was live in over 300 pin codes across the top 6 cities.” It is important to remember that in the first quarter of FY26, AJIO Rush was introduced in six cities. In the meantime, the retail behemoth supported by Reliance said that the rapid clothing service outperformed regular AJIO orders in terms of conversion rates, average selling price, and returns.

    According to a statement from RRVL, the service produced better outcomes than the platform average, including a 16% increase in average selling price (ASP), a 17% improvement in conversion rates, and a 500 basis point decrease in sales returns. At the end of Q2 FY26, Shein, which Reliance relaunched in India earlier this year, had more than 25,000 options, over 6 million app downloads, and 11.4 million monthly active users (MAU).

    Reliance Retail’s outstanding performance during the quarter was driven by our unwavering commitment to operational excellence, investments in stores and digital platforms, and festive shopping across consumption baskets, according to RRVL executive director Isha Ambani’s statement to the media. As consumers benefit from cheaper prices, adjustments in the GST rate will further stimulate the rise of spending.

    Financial Dynamics of Reliance Retail

    Overall, Reliance Retail’s net profit increased from INR 2,836 Cr in the previous quarter to INR 3,457 Cr in Q2 FY26, a 21.9% increase. Additionally, revenue from operations increased by 19% to INR 79,128 Cr in the reviewed quarter from INR 66,502 Cr in the second quarter of FY25.

    However, the digital streaming division of Reliance Industries Ltd. (RIL) had a mixed quarter. In Q2 of FY26, JioHotstar averaged about 40 Cr monthly active users, up from an average of 46 Cr MAUs in the previous quarter. This was mostly caused by the OTT platform’s post-IPL slowness. Consolidated net profit for Jio Platforms, RIL’s digital division, increased 13% to INR 7,379 Cr in Q2 FY26 from INR 6,539 Cr in the same quarter last year.

    From INR 31,709 Cr in Q2 FY25 to INR 36,332 Cr in the reviewed quarter, operating revenue increased by 15%. During the reviewed quarter, RIL’s net profit increased 16% YoY to INR 22,146 Cr, while its gross revenue increased 10% YoY to INR 2.83 Lakh Cr.

    Quick Shots

    •Reliance
    Retail’s JioMart has extended its “quick” delivery service to 1,000+ cities,
    covering over 5,000 pincodes across India.

    •Unlike
    10-minute rivals (Blinkit, Zepto, Instamart), JioMart delivers within 30
    minutes, focusing on reliability and reach.

    •JioMart’s
    daily orders surged 200% YoY and 42% QoQ, reflecting strong adoption of its
    quick delivery model.

    •Platform’s seller network grew 20%
    YoY, adding 58 lakh new customers in Q2 FY26, up 120% QoQ.

  • Brewing Trouble: Zepto Cafe Scales Back Amid Supply and Staffing Snags

    In the face of supply chain problems and a lack of qualified kitchen personnel, Zepto Cafe, the 10-minute meal delivery subsidiary of fast commerce company Zepto, is reducing operations. The delay coincides with rivals Swiggy’s Snacc and Blinkit’s Bistro expanding their presence in important urban markets.

    The four-year-old startup’s attempts to manage its financial burn are causing Zepto Cafe’s growth and expansion to slow down, according to various media reports. As reported, Zepto has also delayed the opening of its “dark stores,” which are essentially miniature warehouses.

    Zepto Café Witnessing Decline in Daily Orders

    According to media reports, Zepto Cafe’s daily orders decreased dramatically in June when compared to the early months of the year. Of the almost 1,000 locations where Zepto offered 10-minute food delivery, 44 stopped their cafe services in May.

    According to a media report that cited a source, typical daily orders used to peak at about 120,000–130,000 but decreased to 65,000–67,000. Operations have been impacted by a number of factors related to staffing and sourcing. In a LinkedIn post on February 22, creator and CEO Aadit Palicha stated that Zepto Cafe’s daily order volume had reached 100,000.

    In response to a media question, a Zepto representative refuted the allegations and stated that the company’s yearly net sales of INR 1,000 crore had increased by 700% year over year and by more than 15% month over month. The business is still putting a lot of effort into it and anticipates significant growth this year.

    However, industry executives also noted that the Zepto Cafe app’s downloads have decreased over the last three to four months, falling from 1.5 million downloads in December 2024 to only 17,000 in June. However, according to various media reports, the main Zepto app accounts for over 90% of Zepto Cafe’s revenue, with the standalone app driving only a small portion of it.

    Blinkit and Swiggy Slowing Down their Acquisitions

    Zepto has been working to grow their market share, but Blinkit and Swiggy have also slowed the opening of new dark shopfronts. Brokerages and industry analysts estimate that Swiggy’s Instamart and Eternal’s Blinkit increased their market share in the rapid commerce space overall during the April–June quarter.

    According to a media report, Blinkit and Instamart are expected to have scaled back their dark store expansion to roughly 250 and 80 new locations in the first quarter of FY26, from 294 and 316 stores, respectively, added in the preceding three months.

    Zepto released a stand-alone app for 10-minute food delivery in December 2024. At that time, it was processing 30,000 orders every day and opening over 100 cafe locations each month.

    In an effort to raise $500 million, Zepto has held conversations with its current shareholders, General Catalyst and Avenir Growth, amid the slowdown in its food delivery sector and the general cooling of its rapid commerce operations. The company hopes to have an IPO by the end of the year, and the funding is a step towards that goal.

  • Amazon Brings Lightning-Fast 10-Minute Delivery to Select Delhi Areas

    Following its initial debut in Bengaluru, Amazon has expanded its 10-minute delivery service, Amazon Now, to a few parts of Delhi. The business was excited about the favourable comments made by clients.

    This action demonstrates Amazon’s dedication to the quickly expanding quick-commerce market in India, where rivals Zepto and Blinkit have already seen notable success. Amazon Now offers a carefully curated selection of everyday necessities that are quickly delivered to satisfy customers’ urgent needs.

    According to an Amazon’ spokesperson, the company has always prioritised providing customers with a large selection together with quick and easy shipping.

    Amazon is thrilled with the first customer response and favourable feedback, especially from Prime members, as it launches its 10-minute delivery service, Amazon Now, in a few pin codes in Bengaluru and Delhi.

    Strategic Expansion to Explore New Markets

    In the upcoming months, the business intends to significantly develop this service. While attending to urgent customer requirements, Amazon Now upholds the company’s standards for safety, quality, and dependability, the spokesman continued.

    In December 2024, this service made its debut in Bengaluru, and in June, it was brought to Delhi. India’s quick-commerce industry is expanding quickly.

    Recent estimates indicate that during the Financial Year 2024–2025, Indians spent INR 64,000 crore on websites such as Blinkit and Instamart. Compared to INR 30,000 crore in the prior fiscal year, this amount more than doubled.

    Growing Nexus of India’s Rapid Commerce Sector

    According to research, the gross order value of the Indian rapid commerce (Q-commerce) market is expected to develop exponentially, nearly tripling from an anticipated INR 64,000 crore in FY25 to about INR 2 lakh crore by FY28.

    According to a report by CareEdge Advisory, a subsidiary of CareEdge Ratings, the Q-commerce market in India is expected to have grown at a startling CAGR of 142% between FY22 and FY25, reaching approximately INR 64,000 crore in FY25.

    This growth was fuelled by a lower base, hyperlocal infrastructure, and changing consumer preferences. Compared to the government, the Q-commerce market’s fee-based revenue has increased at a far quicker rate. With a noteworthy compound annual growth rate (CAGR) of 26–27% from FY25 to FY28, the fee-based revenue, which was INR 450 crore in FY22, increased to an estimated INR 10,500 crore in FY25 and is expected to reach INR 34,500 crore by FY28.

    According to the research, this dramatic rise is the result of major companies raising platform fees, which raises revenue realisation and significantly raises GOV overall. Even if the Q-commerce sector only accounts for about 1% of India’s enormous grocery market, it is precisely what makes it so fascinating.

    With its quick delivery service, Amazon entered this market, demonstrating its calculated attempts to take a piece of this growing industry. The company’s emphasis on offering dependable and speedy service is in line with Indian customers’ growing need for quick-commerce solutions.

  • Zepto CEO Aadit Palicha Slams Rival Q-Commerce CFO for Alleged Smear Campaign

    Aadit Palicha, the CEO and co-founder of Zepto, has openly claimed that the CFO of a rival rapid commerce company is planning a smear campaign against Zepto’s leadership, company, and brand. Palicha posted the allegations on 25 May’s evening on LinkedIn.

    Palicha claimed, without naming the competing CFO or business, that the CFO had been in touch with Zepto’s investors to disseminate untrue claims, disseminated fraudulent internal data via media outlets, and even employed paid social media bots to damage the company’s reputation.

    To be honest, Palicha noted that this experience falls short of what one would expect from a CFO of a reputable corporation. It’s clear that they’re beginning to feel anxious about how quickly Zepto’s EBITDA is becoming better.

    Zepto Showcased Exponential Performance Recently

    While praising Zepto’s recent impressive growth and performance, Palicha pointed out that the company’s users are a big reward for its efforts. Additionally, he pointed out that Zepto’s monthly GOV increased from INR 750 crore in May 2024 to INR 2,400 crore in May 2025.

    Between January and May 2025, the company’s EBITA margin increased by 20% and its cash burn decreased by 65%. Zepto maintained about 20% GOV growth during the same period, with 4-5% monthly growth, despite the emphasis on profitability.

    Zepto reports having net cash reserves of INR 7,445 crore and anticipates operating cash flow and EBITA to be close to breakeven in the upcoming quarter. Despite rumours to the contrary, Zepto is expanding rather than shrinking its network of dark stores.

    At the moment, the company runs around 1,000 dark shopfronts. Palicha highlighted the business’s sound financial and auditing procedures, which include Big 4 statutory audits and thorough due diligence that found no serious issues.

    In addition to having best-in-class H2H payment procedures, vendor reconciliations, asset verification activities, internal audit systems, and a strict Big 4 statutory audit record and Financial Due Diligence record with no material qualifications or variations, Palicha wrote that Zepro boasts an outstanding finance and controllership team.

    Tug of War Between the Quick Commerce Giants

    With a current valuation of $5 billion, Zepto has surpassed Swiggy Instamart but lagged behind Blinkit to become the second-largest participant in the rapid commerce space. Competitors, however, have questioned the transparency of the data.

    Deepinder Goyal, the CEO of Eternal (previously Zomato), charged earlier this year that the rapid commerce industry as a whole was wasting 5,000 crore every quarter, with Zepto being responsible for “substantially more than half” of that amount.

    A contentious discussion concerning the company’s financial discipline was triggered by the remark. Sriharsha Majety, the CEO of Swiggy, recently voiced concerns with Zepto’s published numbers as well, pointing out that Zepto withholds Net Order Value (NOV), a metric that Swiggy and Eternal have implemented to give a more realistic picture of customer spending.

  • Gold and silver Coins will be Delivered via Swiggy Instamart from Kalyan Jewellers

    Just in time for the Akshaya Tritiya festival, Swiggy‘s quick commerce vertical, Instamart, has teamed up with Kalyan Jewellers to provide quick doorstep delivery of gold and silver coins in over 100 cities.

    Through the fast commerce platform, clients will be able to order 24-karat BIS-hallmarked gold coins and 999-pure certified silver coins, which will be delivered in a matter of minutes. A variety of coin weights are available in the offering, including 5 gram, 10 gram, and 20 gram silver coins in addition to 0.5 gram and 1 gram gold coins.

     Although the debut coincides with Akshaya Tritiya, a festival customarily linked to the purchase of precious metals, all coins have ornamental designs and are available throughout the year.

     “This partnership is both timely and relevant as more customers turn to quick commerce for traditional and festive purchases,” said Amitesh Jha, CEO of Instamart. With the addition of Kalyan Jewellers to its platform, Instamart is excited to give its consumers the same easy access to certified, reliable gold and silver coins as they do to groceries or other everyday necessities.

    Growing Interest of Quick Commerce to Explore Precious Metal Sector

    Swiggy’s action coincides with rapid commerce platforms’ increasing interest in entering the precious metals market. Around Diwali and Dhanteras last year, rival Blinkit launched a comparable gold and silver coin delivery service.

     Quick commerce sites have experimented with selling gold and silver before. Similar offerings were made by many at previous year’s Dhanteras. But one notable omission from this Akshaya Tritiya is Zepto, which, in contrast to its competitors Blinkit and Instamart, has decided not to take part as aggressively in the seasonal gold rush.

    Despite rising gold prices and a lacklustre consumer mood, jewellers are hoping for a windfall of about INR INR16,000 crore this Akshaya Tritiya. In the Hindu and Jain calendars, Akshaya Tritiya is an important day that is honoured as a day of prosperity and fresh starts.

    It is frequently connected to buying gold and launching new businesses. Recently, retail gold prices reached INR 1 lakh per 10 grams, which discouraged bulk purchases but increased demand for inexpensive, lightweight jewellery and coins. Quickly adjusting, jewellers have increased their collections under INR 1 lakh and included 14- and 18-carat options.

    Are Quick Commerce Platforms to Handle Expanding Portfolio

    It’s interesting to note that a large number of the gold and silver coins that are advertised on these rapid commerce platforms are either sold out or unavailable. This begs the question of whether these platforms are sufficiently equipped to handle the spike in demand during busy holiday events like Akshaya Tritiya.

    The 10-minute gold rush is more than simply a fun exercise. In response to India’s increasing demand for convenience, quick commerce companies are diversifying their product lines to include everything from iPhones to kitchen appliances.

    A 2025 Bain-Flipkart analysis states that, with a gross merchandise value of $7 billion out of a $170–190 billion e-retail business, fast commerce accounted for up to 4% of the whole e-retail market in 2024.

    According to the survey, the Q-com industry is predicted to expand at a rate of 40% per year, with general merchandise, mobile phones, electronics, and clothing already accounting for 15% to 20% of its GMV.

  • The Distributors’ Body Approaches CCI against Quick Commerce Players Due to Unfair Pricing

    According to reports, the Competition Commission of India (CCI) has received a petition from the All India Consumer Products Distributors Federation (AICPDF) accusing Blinkit, Zepto, and Swiggy Instamart of monopolising the market and charging unjust prices. According to a media report, AICPDF President Dhairyashil Patil made the petition. According to the petition, hyperlocal delivery and speedy trade have grown in popularity in recent years. Fast and effective delivery services are defined by the term “quick commerce.” Products are typically delivered in a matter of minutes. The group also charged that these rapid commerce companies were influencing market competition by offering steep discounts and engaging in exclusive supply and distribution contracts. According to the petition, these activities have a detrimental effect on almost 10 million offline mom-and-pop shops nationwide.

    Not a New Issue

    The authority asked Piyush Goyal, the union minister of commerce, in a letter last year to closely examine the fast commerce giants’ explosive expansion. In order to safeguard small business owners, it also asked the government to control the rapid commerce area. The AICPDF complaint was later forwarded to the CCI by the Department for Promotion of Industry and Internal Trade (DPIIT). The authorities’ persistent efforts to suppress quick commerce companies coincide with Blinkit, Instamart, and Zepto’s rapid growth and the loss of traditional retail establishments’ clientele. The three main businesses are competing for market share in the nation’s fast-food delivery, grocery, and home basics sectors, as well as 10-minute ambulance services. E-commerce giants like Amazon and Flipkart are working to increase their product offerings in this market as a result of this influence.

    Voices Rising Against 10 Minutes Delivery Game

    Concerns about the 10-minute delivery trend are still growing. According to a report last month, the National Restaurant Association of India (NRAI) was thinking of bringing a CCI action against Zomato and Swiggy in order to prevent their 10-minute meal delivery standalone apps, Bistro and Snacc, from being launched. Furthermore, according to a broking study by ICICI Securities, although these businesses continue to use discounts to draw clients, the item-level discounting strategy has lost some of its allure between November 2024 and January 2025. It is important to remember that Zepto, Instamart, and Blinkit together generated over $1 billion in revenue in FY24.

    Rapid Commerce Conflict

    The rapid commerce industry has evolved into a high-cash-burn sector, with companies allocating billions towards expansion and client acquisition. Industry estimates indicate that the aggregate monthly cash burn of rapid commerce entities, including new entrants, ranges between INR 1,300 and 1,500 crore—more than double in recent months.

    Despite nearing operational breakeven in Q2 FY25, Blinkit’s losses escalated in Q3 FY25, with operating losses rising to INR 103 crore from INR 8 crore in the preceding quarter. Swiggy reported a net loss of INR 799 crore, while Instamart had an adjusted EBITDA loss of INR 578 crore in Q3, compared to INR 358 crore in Q2. Zomato’s ability to continue investing in Blinkit stems from its financial stability. In November 2024, Zomato secured INR 8,500 crore in a qualified institutional placement (QIP) to enhance its balance sheet and finance its rapid commerce operations. As of December 31, 2024, Zomato possessed cash reserves amounting to INR 19,235 crore, providing adequate liquidity to support Blinkit’s expansion.

  • Swiggy’s Rapid Commerce Profit Margins Suffer as Discounts and Expansion take Priority

    In the third quarter of the current fiscal year (Q3 FY25), Swiggy Instamart’s margins were negatively impacted by the growing rivalry in the rapid commerce market, as the company increased its investments to keep the competition at bay. The contribution margin for Swiggy Instamart decreased from -1.9% in the previous quarter (Q2FY25) to -4.6% during the reviewed quarter.  Higher growth investments, especially in user engagement and the expansion of darkstores across different areas, were cited by the company as the reasons for this reduction.

    It further stated that rising competition resulted in higher consumer incentives and higher client acquisition costs, which caused the contribution margin to decline.  Notably, the fast commerce segment’s adjusted EBITDA margin also decreased from -10.6% in the previous quarter to -14.8% in Q3 FY25. This decline was mostly caused by higher brand and performance marketing expenditures as well as a decline in the contribution margin.

    As structural changes take place, Swiggy anticipates that Instamart’s short-term margins will be range-bound. These gains will be fuelled by increased average order value, rising ad income, decreasing delivery costs as scale increases, and improved store cost efficiency.

    Nevertheless, Swiggy Instamart’s gross order value (GOV) increased by 15.5% on a quarter-over-quarter (QoQ) and 88.1% on an annual basis (YoY) to INR 3,907 Cr. In Q3 FY25, its monthly transacting users (MTUs) increased by 13.9% QoQ and 62.7% YoY to 7 Mn. Compared to INR 293 Cr during the same period last year, its adjusted revenue for the period was INR 603 Cr, a 105.8% increase. It increased 17.5% sequentially from INR 513 Cr in Q2 of FY25.

    Instamart Spreading its Wings

    On a sequential basis, Instamart recorded a mere 7.3% increase in the quantity of orders. This was explained by Swiggy as the “back-ended nature of store expansion.” The influence on order frequency is delayed when new stores open later in the quarter since new customer acquisition occurs at the end of the quarter.

    According to the company’s post-earnings teleconference, “A higher share of new customers results in a lower overall order frequency because order frequency doesn’t increase immediately for new users.” Notably, Swiggy Instamart increased the number of operational dark stores to 705 by adding 96 new ones in Q3 FY25. By contrast, rival and industry leader Blinkit expanded its shop count to 1,007 during the December quarter, adding 216 dark locations.

    Additionally, Swiggy has replaced some of its smaller locations, which were between 2,500 and 2,800 square feet, with larger locations that are between 3,500 and 4,500 square feet and have the capacity to hold up to 20,000 SKUs. The average store size increased from 3,200 square feet in Q2FY25 to 3,475 square feet in Q3FY25 as a result of this expansion, the business stated in a statement.

    This puts the business on schedule to meet its goal of having an active dark store footprint of 4 million square feet by March 2025. Co-founder and CEO of Swiggy, Sriharsha Majety, claims that while controlling overall growth, the company’s near-term expansion was fuelled by both geographic expansion and densification into outlying areas within already-existing towns. He continued in the call, “Most floor additions going forward will be aimed at managing overall category growth rather than entering entirely new areas.”

    Financial Performance of India’s Quick Commerce Sector

    It is important to note that, according to Zomato and Swiggy’s remarks following the release of their Q3 results, the December quarter was among the most competitive in the rapid commerce segments. The three major participants in the market, Zepto, Blinkit from Zomato, and Instamart, are well-funded and rapidly growing their networks.

    The rivalry has gotten more fierce since e-commerce behemoths Flipkart and Amazon entered the market, while JioMart and BigBasket have increased their emphasis on speedy transactions. Swiggy is optimistic that the additional stores will become successful, nevertheless.

    Overall profitability will increase as more stores stabilise and achieve steady-state unit economics; mature stores should see a 4-6% positive margin trend, according to the business. Store expenses, including fixed costs incurred prior to a store opening, usually last between 30 and 45 days, according to Majety.

    However, because of increased competition, the cost of acquiring new customers can vary depending on the category’s investment level. Even though there have been some challenges in this area, we are always refining our strategy to increase productivity. He thinks that if the category as a whole expands, the company’s costs associated with acquiring new customers will eventually decrease.

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  • Amazon is Entering the Competition for 15-Minute Deliveries

    Amazon promises to provide daily necessities in 15 minutes or less as it makes a daring entry into India’s expanding rapid commerce business. Later this month, the test programme will launch in Bengaluru, bringing competition to a market already dominated by Swiggy Instamart, Zepto, and Blinkit.

    Samir Kumar, the national manager for Amazon India, made the announcement at the company’s annual Smbhav event in Delhi. He explained that the test experiment is intended to satisfy the need for quicker deliveries and emphasised Amazon’s emphasis on “selection, value, and convenience.” The service’s name, which is allegedly “Tez,” has not been verified, though.

    Dark stores, which are tiny warehouses that only fulfil online purchases, will be used by the firm to support its operations. Although Amazon has not disclosed the number of dark stores it plans to open or the cities that will follow Bengaluru, media reports reveal that future growth will be contingent on the pilot’s success.

    Why Amazon Wants to Test the Waters of Quick Commerce Space?

    In India, quick commerce is expanding quickly due to shifting consumer preferences and an increase in the need for convenience and quickness. Ninety-one percent of Indian internet shoppers are aware of rapid commerce platforms, and over half have recently utilised them, according to a Meta research.

    According to the survey, 57% of consumers are spending more money on rapid commerce platforms, with the most popular categories being food and personal care items. Quick commerce concentrates on daily necessities that consumers need right away, in contrast to traditional e-commerce, which is frequently visited for gadgets and fashion items. As consumers depend more and more on fast commerce platforms to restock on fresh produce, dairy, and other essentials, the grocery sector has benefitted greatly from this trend. This is a big change because traditional e-commerce typically takes longer to provide these kinds of things.

    Entry Made Late But With Purpose

    Amazon is joining the rapid commerce space later than its competitors, who have already taken a sizable portion of the industry. With the use of robust networks of underground stores, businesses like Blinkit, Zepto, and Swiggy Instamart can supply groceries and other necessities in a matter of minutes.

    Kumar said that Amazon takes its time making decisions but strives to create high-quality products when it does, which is why the firm took so long to launch. Amazon India wants to make sure that its employees and customers are protected. India’s quick commerce market is expected to be worth $6 billion and is expanding quickly. Instead of the conventional one- or two-day possibilities, consumers are increasingly turning to platforms that guarantee ultra-fast deliveries, particularly in urban regions.

    Amazon already offers a two-hour grocery delivery service called Amazon Fresh. The 15-minute service might provide it with a convenience advantage and draw in more clients from its current clientele of millions, which includes Prime subscribers.

    Locking Horns With Market Leaders

    The market for established players like Blinkit, Zepto, and Swiggy Instamart may be disrupted by Amazon’s arrival. These players have made extensive use of their first-mover advantage and existing networks. With its client base, financial resources, and logistics know-how, Amazon might really challenge their hegemony.

    But it won’t be simple. Fast commerce necessitates perfect execution, which includes competitive pricing, effective delivery systems, and robust inventory management. In a field where competitors already dominate, any mistakes could make it hard for Amazon to get traction.

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  • Swiggy’s Food Delivery Business is not Concentrating on Expanding into New Cities

    The food delivery industry has reached a saturation point in terms of the number of cities; thus, foodtech giant Swiggy is concentrating on strengthening its position in the current locations rather than expanding geographically. Following the release of its financial results for the second quarter of FY25, the company emphasised during its earnings call that there is no longer any business case for growing into an additional 50–100 cities. According to the corporation, there isn’t a strong commercial rationale for expanding to another 50 or 100 locations; therefore, doing so would primarily be a selfish exercise.

    Swiggy is instead focusing on expansion in high-potential metropolitan areas with growing migrant populations and developing communities, such as the new Bengaluru and Delhi NCR neighbourhoods. Cities like Bengaluru and the National Capital Region are no longer confined to their central regions. According to Swiggy CEO Sriharsha Majety, the company’s expansion into neighbouring zones—which Swiggy refers to as Tier 1.5 locations—is growing more and more important as new customers in these areas look for affordability.

    Changing Business Strategies

    Affordability is still a major factor, the CEO continued, particularly for markets like regular corporate lunches, where maximising delivery speed by distance is essential. Core city rents are also rising. In the meantime, Swiggy is trying to satisfy the increasing demand from customers for more options for its rapid commerce vertical, Instamart. It is still difficult to strike a balance between this and delivery speed, though. Although consumers anticipate a wide selection of goods, Swiggy claims that its current business strategy can supply up to 20,000 SKUs in 10 minutes. According to Majety, the corporation would have to make a minor compromise by lengthening the delivery time if it wanted to increase the assortment beyond this range.

    Adding New Dark Stores for Business Expansion

    Rahul Bothra, the CFO of Swiggy, told a media outlet last month that the company’s new dark stores would essentially occupy an area that is two to three times larger than its existing dark stores. In addition to expanding the company’s SKU coverage, adding dark stores will provide a variety of delivery options; for example, Swiggy Instamart can deliver some items in 10 minutes and others in 20 minutes, Bothra stated. On December 4, Swiggy announced that its operating revenue had increased by 30% to INR 3,601.45 Cr, while its consolidated net loss had decreased by 4.78% year over year to INR 625.53 Cr. In the quarter ending in September 2024, Swiggy Instamart’s operating revenue increased 135.7% to INR 490 Cr from INR 208 Cr in the same time the previous year.

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  • Get Ready for Festival Season With Swiggy Instamart and Its 24-hour Free Delivery in Delhi, NCR

    Instamart, the rapid commerce division of IPO-bound online food delivery business Swiggy, has introduced free 24-hour delivery for all Delhi-National Capital Region (NCR) clients to capitalize on the expected spike in demand over the festival season.

    According to the company, the quick commerce platform aims to satisfy the increasing demand by providing thousands of products across Delhi, Gurgaon, and Noida with quick delivery within 10 to 15 minutes, every day of the week.

    Particularly during the hectic holiday season full of last-minute preparations, the company claims to have noticed that once the shutters go down in the late hours, the demand for necessities not only persists but also rises.

    Spike in Late-Night Orders

    Customers place orders all night long, according to Swiggy, during the holiday season, particularly around festive occasions like the celebrations of Diwali.

    According to Swiggy Instamart’s order data, orders for late-night snacks like chips, bhujia, and ice cream, as well as products for sexual wellness and other pan corner necessities, are still placed between 11 PM and 6 AM. As the night draws in, breakfast staples like milk and eggs become more and more popular in the orders.

    At the same time, Swiggy is putting all of its resources into growing its rapid commerce division. In anticipation of an initial public offering (IPO) valued at around INR 10,000 crore, the business has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Through a new issuance, the corporation hopes to raise INR 3,750 crore.

    Company’s Plan for Expansion

    With its subsidiary Scootsy, the food delivery giant intends to use up to INR 982 crore, or around 27% of the IPO proceeds, to grow Instamart’s dark shop network after the IPO. The company has 581 dark stores open as of June 30. These stores ranged in size from 1,400 to 10,000 square feet.

    First quarter (Q1) of fiscal year 2025 (FY25) saw a 56% year-over-year (Y-o-Y) increase in Instamart’s gross order value (GOV) to INR 2,724 crore. On the other hand, its GOV for food delivery increased by 14% year over year to INR 6,808 crore. Even though the rapid commerce vertical was introduced six years later, its GOV already accounts for 40% of the food delivery GOV.

    With the goal of making the service available to as many customers as possible nationwide, Instamart will assess expanding to additional large cities after Delhi-NCR.

    Instamart, which was founded in 2020 and is presently active in 43 cities, is a competitor in the fast or expedited delivery market alongside Blinkit, Zepto, and Bigbasket.

    Swiggy Filed an Updated DRHP With SEBI for Its INR 3,750 crore IPO
    The draft red herring prospectus (DRHP) was submitted to SEBI, the markets regulator, by food aggregation and grocery delivery platform Swiggy on 26 September 2024.
    StartupTalkyNitin Konde