By Anuj Suvarna
Copyright yourstory
Swiggy is reorganising one of its growing divisions, Instamart, by moving it into a wholly owned subsidiary, Swiggy Instamart Private Limited. The board approved the move on Tuesday, and it is now pending shareholder approval.
Swiggy is transferring all of Instamart’s operations, employees, assets, and contracts to the new company in what is legally referred to as a slump sale. This means the business is sold as a whole for a single agreed-upon price, based on the net value of its assets minus liabilities. Swiggy is moving Instamart onto its own balance sheet, rather than splitting up individual assets or accounts.
For the fiscal year ending March 2025, Instamart generated Rs 2,130 crore in revenue, making up about a quarter of Swiggy’s standalone revenue.
Why Swiggy is doing this
Operational Flexibility: As a separate company, Instamart can make quicker decisions on technology, warehousing, and delivery logistics without being tied to Swiggy’s broader food delivery operations.
Attracting Investors: Investors often prefer putting money into clearly defined business units. By separating Instamart, Swiggy can potentially raise capital specifically for its quick commerce operations.
Future Growth Options: A standalone entity can pursue partnerships, acquisitions, or even a public listing in the future.
For Swiggy, this is largely a structural move, but it signals a growing focus on quick commerce—the market for ultra-fast grocery and essentials delivery. The sector has attracted heavy investment from global and local players, making it a high-stakes battlefield.
For investors, the move provides clearer financial reporting. Any profits or losses from Instamart will now be separate, making it easier to evaluate the performance of Swiggy’s different segments.
The transaction is expected to finalize after Q3 FY 2025-26, subject to regulatory approvals and completion of the necessary documentation.
(Edited by Affirunisa Kankudti)
