Instamart's contribution margin improved to negative 0.2% as Swiggy topped revenue estimates and said it will add 75 new dark stores in the September quarter.
Swiggy Ltd. posted a narrower consolidated net loss of 7.91 billion rupees for the quarter ended June 30, while revenue rose 37% year-on-year to 68.12 billion rupees and came in above analysts' expectations of 65.21 billion rupees, according to LSEG data. The company said growth was supported by its food delivery business and by Instamart, its quick-commerce platform. Instamart's contribution margin improved to negative 0.2% of gross order value from negative 1.8% in the previous quarter, as higher advertising income, more frequent customer orders and a broader product assortment at its dark stores helped profitability. Group CEO and co-founder Sriharsha Majety said Swiggy had chosen contribution over growth for Instamart over the last four quarters. Swiggy said it expects Instamart's contribution margin to remain in the 0% to negative 1% range over the next couple of quarters and plans to open 75 new Instamart stores in the September quarter. Instamart currently operates 1,171 stores across 131 cities. The update highlights how India’s quick-delivery platforms are trying to improve unit economics even as competition remains intense with rivals including Eternal's Blinkit, Zepto and Tata-backed BigBasket.