๎Swiggy Instamart, the quick commerce arm of Swiggy, added 316 new dark stores in the fourth quarter of FY25, reflecting its aggressive expansion strategy to capture a larger share of Indiaโs fast-growing instant delivery market.๎ ๎This addition brings Swiggyโs total number of dark stores to over 1,000 across 124 cities, marking a significant milestone in its nationwide footprint.๎๎
Strategic Expansion Amidst Rising Competition
๎The move comes as competition heats up with rivals like Blinkit (backed by Zomato) and Zepto aggressively scaling their own instant delivery operations.๎ ๎Swiggyโs Q4 FY25 report highlights that Instamart’s Gross Order Value (GOV) doubled year-on-year to โน4,670 crore, reinforcing consumer demand for quick commerce.๎ livemint.com
Operational Impacts and Financial Performance
๎While the rapid expansion of dark stores has bolstered order volume and customer reach, it has also contributed to increased operational expenses.๎ ๎Swiggyโs total Q4 expenses rose by 52% year-on-year to โน5,610 crore, a large part of which was driven by Instamart’s infrastructure growth.๎๎
The Role of Dark Stores
๎Dark stores are strategically located micro-warehouses used to fulfill online orders quickly.๎ ๎By adding 316 of these in Q4 alone, Swiggy aims to reduce delivery times and enhance inventory management, enabling delivery within 10โ30 minutes in most urban centers.๎๎
Long-Term Vision for Instamart
๎Despite short-term financial pressure, Swiggy views Instamart as a critical growth engine.๎ ๎With demand for fast delivery of groceries and essentials surging in metropolitan and Tier 2 cities, Instamart is expected to play a pivotal role in Swiggyโs long-term profitability roadmap.๎
