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Instamart pilots physical experiential store in Gurugram

EntrackrEntrackr · 1m ago
Instamart pilots physical experiential store in Gurugram
Medial

News All Stories Instamart pilots physical experiential store in Gurugram The outlet, located at M3M 65th Avenue, operates as an Instamart branded experiential store and is separate from the company’s dark store network. Harsh Upadhyay 21 Dec 2025 Swiggy's quick commerce arm Instamart has piloted a physical experiential store in Gurugram, as the company tests a limited offline format alongside its dark store led delivery operations, according to media reports and people aware of the development. The outlet, located at M3M 65th Avenue, operates as an Instamart branded experiential store and is separate from the company’s dark store network. Consumers can visit the store to see select products, with purchases being made through walk-in transactions at the outlet rather than via the Instamart app. As reported earlier, the store carries a narrow assortment of around 100 to 200 SKUs, compared to the much wider catalogue available at Instamart dark stores. Sources said these experiential formats are being opened in and around residential societies by sellers on the Instamart platform. The stores are not positioned as retail outlets but as small format experiential spaces with a limited SKU range. The focus is largely on categories where consumers prefer physical inspection before purchase, including fresh fruits and vegetables, pulses, new product launches and offerings from some direct to consumer brands. The initiative is expected to be primarily centred on fresh categories. The transaction structure at these stores also differs from Instamart’s standard model. As per sources, payments made at the outlet are routed directly to sellers, rather than being collected by Swiggy and settled later after commission deductions. Sellers are understood to be experimenting with the format under Instamart’s branding and service support. Instamart continues to operate through a network of dark stores across multiple cities for rapid delivery of groceries and daily essentials, with the experiential outlet functioning alongside this infrastructure. Swiggy has not made an official announcement on the initiative and has not indicated whether it plans to expand the format to other locations. Swiggy did not respond to queries till publication.

With Rs 908 Cr loss in Q3 FY26, Swiggy Instamart profitability remains elusive

EntrackrEntrackr · 14h ago
With Rs 908 Cr loss in Q3 FY26, Swiggy Instamart profitability remains elusive
Medial

Swiggy Instamart continues to scale rapidly in terms of orders and users, even as profitability remains elusive for the quick commerce business. During the quarter ended December 2025, Instamart processed 106.4 million orders from 12.8 million users, with an average order value (AOV) of Rs 746. The company operated 1,136 active dark stores during the period. However, the growth came at a significant cost. Instamart reported a loss of Rs 908 crore in the quarter, making it Swiggy’s largest loss-making vertical. Despite quarterly revenue crossing Rs 1,000 crore (Rs 7,938 crore GOV), losses widened due to higher spending on dark store operations, warehousing rentals, last-mile delivery, inventory handling, and customer incentives. On a nine-month basis, Instamart generated Rs 2,802 crore in revenue, while losses expanded to Rs 2,327 crore. Even with rising order volumes and improving AOV, fulfillment-heavy quick commerce orders continue to struggle to absorb high fixed and variable costs linked to sub-30-minute delivery commitments. The contrast with Swiggy’s core food delivery business remains stark. Food delivery reported positive segment results during the quarter, which improved unit economics in a more mature and asset-light model. A comparison with Zomato-owned Blinkit further highlights the divergence within quick commerce. Blinkit reported EBITDA-level profitability in Q3 FY26, aided by tighter control over store density, higher throughput per dark store, and a more disciplined approach to discounts and incentives. During the Q3, Blinkit registered GOV of Rs 12,256 crore. While Blinkit’s profitability remains at an early stage, it suggests that selective expansion and operational efficiency may be critical to improving quick commerce economics. For Swiggy, Instamart’s widening losses indicate that scale alone is unlikely to deliver near-term profitability. As competition intensifies and capital requirements remain high, quick commerce continues to be a growth driver, but not yet a sustainable profit engine. As of December 31, 2025, Swiggy had cash and cash equivalents of Rs 13,512 crore, which included Rs 9,931 crore from net QIP proceeds. The company also received around Rs 2,400 crore from the sale of its stake in Rapido, taking its proforma cash balance to about Rs 15,900 crore.

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