Amid the rising popularity of quick commerce, Swiggy
Instamart has expanded its services to 32 new cities in the country in 2025 so far. With this, the foodtech giant’s quick commerce services are now available in 100 cities.
In a statement, the company said that there is growing demand for 10-minute deliveries in Tier-II & III cities. As a result, Instamart launched its services in cities like Raipur, Siliguri, Jodhpur, and Thanjavur over the last month.
With this expansion, the Bengaluru-based company claims that its customers will have access to more than 30,000 products ranging from electronics, smartphones, fashion, makeup, toys, and more.
“In 2025, one in four new users came from tier 2 or 3 cities, underscoring the growing demand for quick commerce. With this growth, we’re excited to bring the same level of convenience, choice, and value to a much wider base of customers,” said Amitesh Jha, CEO of Swiggy Instamart.
Moreover, the company has also beefed up its darkstore infrastructure by introducing ‘megapods’ which can store up to 50,000 stock-keeping units (SKUs). The Sriharsha Majety-led company claims that the new megapods gives its customers access to three times the range of products available in a normal dark store.
Last year Majety pointed out that while quick deliveries are essential, having the right assortment of products and SKUs will be a key differentiating factor in quick commerce.
The development comes at a time when all quick commerce companies – Zepto, Blinkit, and Swiggy Instamart – are on an expansion spree amid rising demand. Besides, new players like Flipkart Minutes and Amazon have also entered the segment.
Swiggy opened 96 new dark stores in Q3 FY25, taking its total active dark stores to 705 at the end of the quarter. The company targets to take this number to 1,000 stores by March 2025.
However, this expansion spree took a toll on the bottom line of Swiggy. Swiggy Instamart’s standalone margin contribution to the parent company’s top line dropped to -4.6% in the third quarter of the ongoing fiscal year (Q3 FY25) from -1.9% in the preceding quarter. Its EBITDA margin also slipped to -14.8% in Q3 FY25 from -10.6% in the preceding quarter.
Overall, Swiggy reported a net loss of INR 799 Cr during the quarter, up 39.1% year-on-year.
Shares of Swiggy were trading 0.34% lower at INR 352.10 on the BSE at 01:23 PM today.
