Swiggy‘s quick commerce business, Instamart, has reported a significant surge in operating revenue, growing 135.7% to INR 490 crore in the quarter ended September 2024 (Q2 FY25).
Instamart nets revenue INR 208 Cr in q2 FY24
The company reported INR 208 crore in the year-ago period. Sequentially, the revenue grew 31% from INR 374 crore.
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Reportedly, the adjusted revenue of Instamart more than doubled to INR 513 crore during the quarter under review from INR 240 crore in Q2 FY24. On a quarter-on-quarter (QoQ) basis, it grew 67.9% from INR 403 crore.
According to Swiggy’s shareholder letter, Instamart is rapidly growing its geographical footprint and is now available in 54 cities, compared to 27 cities in March 2024. The company aims to double its store count by March 2025 from 523 stores in March 2024.
“We are replacing some of our older, small-format stores (2,500-2,800 sq ft) with larger stores (3,500-4,500 sq ft) that can house up to 20K SKUs,” the company said. It is also rolling out ‘megapods’ (8,000-10,000 sq ft) in top cities, which can house over 50K SKUs.
“These megapods will serve consumers in 10 to 30 minutes with an extended selection of items beyond the top 20K SKUs,” the company explained. The service is already available for select consumers in Bengaluru.
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Instamart’s contribution margin improved to -1.9% – CEO, Swiggy
Swiggy founder and CEO Sriharsha Majety said that despite growth investments and rising competitive intensity, Instamart’s contribution margin improved to -1.9% in Q2 FY25. The company expects Instamart to achieve contribution break-even by Q3 FY26 (October-December 2025) and adjusted EBITDA break-even by Q2 FY27 (July-September 2026).
