Sat Feb 08 08:10:00 UTC 2025: **Swiggy’s Instamart Aims for Profitability as Quick Commerce Competition Heats Up**

Bengaluru, India – Swiggy, the Indian food-tech giant, is projecting profitability for its quick commerce arm, Instamart, by the third quarter of fiscal year 2026. CFO Rahul Bothra revealed that the company is focusing on reducing delivery costs and increasing advertising revenue to achieve this goal. Instamart’s average order value rose 14% year-on-year to ₹534 in the October-December quarter, and delivery costs are at their lowest ever. Advertising revenue surged by 65% to ₹751 crore during the same period.

Despite this positive trajectory, Swiggy’s overall losses widened to ₹799 crore in the October-December quarter, largely due to increased investments in Instamart to compete with rivals like Zomato’s Blinkit. The company plans to double its dark store footprint to 4 million sq. ft by March 2025, adding numerous stores in the coming months. The expansion is driven by the highly competitive quick commerce market.

Swiggy is also expanding its offerings beyond Instamart. Its 10-minute delivery service, Bolt, now accounts for 9% of Swiggy’s food delivery volume, and a new 15-minute delivery app, Snacc, has been launched. The company is also experimenting with standalone apps for different services, including Instamart and a professional services marketplace.

However, Swiggy faces challenges. The National Restaurant Association of India has criticized Swiggy and Zomato for alleged monopolistic practices and violation of marketplace neutrality. While Swiggy clarified its partnerships for Snacc, the competitive landscape and regulatory scrutiny remain significant hurdles in the quick commerce sector.

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