Swiggy Instamart: Quick Commerce Expansion and Growth Plans

Swiggy plans to double its Instamart store count and expand its space to 40 lakh square feet by March 2025. The company is focusing on hyperlocal and geographical expansion. New 'megapods' will enhance SKU offerings, aiming for increased active store areas and a growing average order value.

Swiggy, the on-demand convenience platform, has announced ambitious expansion plans for its Instamart quick commerce division. By March 2025, the company aims to double its store count to over 1,045, covering more than 40 lakh square feet. The expansion will see Instamart available in more cities and larger physical spaces.

Swiggy's strategy focuses on hyperlocal expansion and geographic growth, intending to densify existing cities and establish presences in new ones. The company plans to boost the average size of its stores by up to 35%, with new 'megapods' in major cities offering over 50,000 SKUs and quicker delivery times.

The growth strategy foresees an increase in active dark store areas and a higher average order value. Swiggy anticipates its take-rate and contribution margins will expand, projecting a 4-5% adjusted EBITDA margin. The platform includes various revenue streams such as fees from users and advertising income from brand partners.

(With inputs from agencies.)