Swiggy To Begin Instamart Inventory Model Transition, Eyes Pivot Within Three Quarters
Over two months after attaining the IOCC (Indian-Owned and Controlled Company) tag, Swiggy announced that it will shortly commence transitioning…
Swiggy, an Indian food delivery company, is set to transition its Instamart quick commerce arm to an inventory-led model by mid-Q3 FY27, according to its Q2 shareholders letter. This switch is expected to improve the working capital cycle by 8-10 days and potentially add 80 basis points to Instamart's contribution margin. Instamart has been under pressure due to weakened margins in the September quarter (Q2 FY27), with a contribution margin of -1% of gross order value and an adjusted EBITDA loss of ₹895 Cr.
The inventory model will offer Instamart greater control over product assortment, pricing, availability, and day-to-day operations compared to its current marketplace-based model.
Written by urgent.news from Inc42's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
