Swiggy Plans Instamart Model Shift to Boost Margins

Swiggy’s quick-commerce arm Instamart is preparing to shift from a marketplace model to an inventory-led model, following shareholder approval that gives the company Indian-owned and controlled status. The move could allow Instamart to hold inventory directly and compete more closely with market leader Blinkit in India’s rapidly growing quick-commerce sector.

Swiggy expects the transition to improve Instamart’s contribution margin by around 80 basis points, or roughly ₹4-5 per order. An inventory-led model could also provide greater control over pricing, product selection and supply chains, while bulk purchasing and lower wastage could further improve profitability. Blinkit, which adopted a similar model last year, has reported improving margins and turned positive overall in the March 2026 quarter.

However, the shift will require Swiggy to invest more working capital to purchase and manage inventory, analysts said. Swiggy remains unprofitable and is targeting positive earnings per share by fiscal 2031. The company is also looking to expand sales of higher-margin products and private-label goods as competition intensifies among quick-commerce players including Blinkit, Zepto, Amazon India, Flipkart and Reliance.

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