Swiggy Instamart’s Q2 Revenue Zooms 136% YoY To INR 490 Cr

Foodtech major Swiggy’s quick commerce business saw its operating revenue surge 135.7% to INR 490 Cr in the quarter ended September 2024 (Q2 FY25) from INR 208 Cr in the year-ago period.

Sequentially, Swiggy Instamart’s revenue grew 31% from INR 374 Cr.

Meanwhile, its adjusted revenue more than doubled to INR 513 Cr during the quarter under review from INR 240 Cr in Q2 FY24. On a QoQ basis, it grew 67.9% from INR 403 Cr.

In its shareholder letter, the company said that Instamart is rapidly growing its geographical footprint and is now available in 54 cities compared with 27 cities in March 2024. 

Further, the company is aiming 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. 

Notably, the service is already available for select consumers in Bengaluru. 

The company’s megapods for Instamart will cover a radius of 2 km, and these stores will increase the SKU selection without compromising on the quick commerce customer experience. 

“The dark stores we are now opening will ideally have an area equivalent to 2-3 times of our current dark stores. This will not only increase our SKU coverage, but also support assorted deliveries — i.e we can deliver some products in 10 minutes and others within 20 minutes,” Swiggy CFO Rahul Bothra told Inc42 earlier this year. 

Meanwhile, 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. 

Swiggy said it expects Instamart to achieve contribution break-even by Q3 FY26 (October-December 2025) and adjusted EBITDA break-even by Q2 FY27 (July-September 2026).

On a consolidated basis, Swiggy trimmed its net loss by 4.78% to INR 625.53 Cr in Q2 FY25 from INR 657 Cr in the year-ago quarter. Operating revenue increased 30% to INR 3,601.45 Cr during the quarter under review from INR 2,763.33 Cr in the year-ago period.