Swiggy’s board has given the green light for the company to raise ₹10,000 crore ($1.1–$1.5 billion) through a mix of public and private issuances, including a potential Qualified Institutional Placement (QIP). This capital injection is aimed predominantly at scaling Instamart, Swiggy’s quick commerce arm, and expanding its core food delivery business, especially across Tier-2 and Tier-3 cities. The company will hold an Extraordinary General Meeting (EGM) soon to secure shareholder approval before proceeding.
Instamart’s Market Share and Growth Trajectory
In the highly competitive 10-minute delivery space, Swiggy Instamart ranks consistently among the top three players alongside Blinkit and Zepto. Recent reports estimate market share as:
- Blinkit leading with approximately 44-46%
- Zepto at around 29-30%
- Instamart holding a solid 23-25% share
Instamart posted a 110% year-on-year increase in gross order value (GOV) in the recent quarters, with the contribution margin improving by 200 basis points, moving closer to profitability with a contribution margin of around -2.6%. It aims to achieve full quick-commerce contribution margin profitability by June 2026, with a projected long-term EBITDA margin of about 4%.
Latest Financial Performance (Q2 FY26)
It reported a consolidated revenue of ₹5,561 crore in Q2 FY26, a 54.4% growth year-on-year, driven heavily by growth in both Instamart and supply chain segments. However, the company posted a net loss of ₹1,092 crore, wider than the ₹626 crore loss in Q2 FY25, attributable largely to aggressive marketing spends and expansion-related costs. Notably, Instamart and supply chain contributed nearly 64% of Swiggy’s total revenue, showing the company’s successful diversification beyond traditional food delivery.
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Recent Expansion and Strategic Initiatives
Swiggy’s quick commerce expansion includes:
- Operating in over 120 cities, with a dark store network that can handle double current order volumes.
- Significant growth in non-grocery verticals within Instamart, expanding from 9% to 26% of its revenue mix.
- Successful festive season deliveries handling over ₹19,000 crore worth of goods.
- Expanding partnerships and integrated services like Bolt for speedier deliveries and Swiggy One subscription enhancing user engagement.
These initiatives reflect Swiggy’s push towards becoming a holistic consumer platform integrating food, quick commerce, mobility, and beyond.
Conclusion
Swiggy is making a decisive bet on Instamart and quick commerce, leveraging new capital to consolidate market share and accelerate profitability. While losses persist in the short term due to growth investments, the company’s revenue growth, improving margins, and market positioning present a compelling story of navigating India’s fast-evolving delivery ecosystem. Swiggy’s robust multi-vertical strategy sets it up for sustained leadership in India’s booming quick commerce and food delivery sectors
