Check out the latest update from Swiggy’s Instamart! Incredibly, Instamart outperforms Swiggy’s core food delivery business in key financial metrics. In the first quarter of FY25, Instamart’s gross order value (GOV) soared by 56% year-over-year to reach ₹2,724 crore, while the food delivery GOV increased by 14% year-over-year to ₹6,808 crore. Uncover the factors driving Swiggy Instamart 56% YoY growth, surpassing food delivery milestones.
Here are some exciting highlights:
1. Despite being launched six years after its competitors, Instamart has quickly become a dominant force in the food delivery industry, accounting for 40% of the Gross Order Value (GOV).
2. Instamart boasts an impressive Average Order Value (AOV) of ₹487, outperforming the industry average of ₹436 for food delivery services.
3. Instamart’s revenue is estimated to be a quarter of Swiggy’s food delivery business, showcasing its rapid growth and market presence.
4. Swiggy’s ambitious plans include investing ₹982 crore from its IPO to expand Instamart’s dark store network further, demonstrating a solid commitment to its growth.
In comparison, Zomato-owned Blinkit has experienced a remarkable 130% year-over-year surge in its Gross Order Value (GOV), outpacing Zomato’s food delivery GOV, which increased by 21% yearly.
Additionally, Swiggy intends to use ₹559 crore from the IPO through its subsidiary Scootsy to expand Instamart’s dark store network. As of June 30, the company had already operated 581 dark stores.
The competition is intensifying, with rivals such as Blinkit, Zepto, and Flipkart rapidly expanding their dark store networks:
1. Blinkit aims to have 2,000 dark stores by 2026, signalling its ambitious growth plans.
2. Zepto plans to double its store count from 350 to 700 by March 2025, showcasing its rapid expansion strategy.
3. Flipkart will open nearly 100 dark stores across top cities, indicating its aggressive market presence.
In conclusion, Swiggy’s Instamart is capitalising on the quick commerce opportunity and is outpacing its food delivery growth. With extensive expansion plans underway, Instamart is poised to become a significant revenue driver for Swiggy, heralding promising times ahead for the company.
Swiggy Instamart Growth 56% YoY | Quick Commerce Success
