Swiggy Instamart says demand in Tier II, III markets growing as it expands quick commerce to 100 cities

Instamart

Quick commerce platform Swiggy Instamart has expanded to 100 cities in India, parent entity and Online food delivery company Swiggy said in an exchange filing on March 17, citing growing demand from Tier II and III cities.

The company said the expansion comes on the back of growing demand for 10-minute deliveries, especially in tier 2 and tier 3 cities.

Swiggy Instamart CEO Amitesh Jha said the expansion will also support dark store network and delivery partners.

"In 2025, one in four new users came from tier 2 or 3 cities, underscoring the growing demand for quick commerce. With this growth, we’re excited to bring the same level of convenience, choice, and value to a much wider base of customers," Jha said.

"With this expansion, millions of new customers now have access to over 30,000 products, from groceries and daily essentials to electronics, smartphones, fashion, makeup, toys, and more—all delivered in 10 minutes," Swiggy’s statement added.

Swiggy Instamart said it is expanding the platform’s darkstore network by introducing 'Megapods' ahead of the upcoming cricket season. These megapods, rangin between 10,000-12,000 square feet in size, can store up to 50,000 stock-keeping units (SKUs), offering consumers access to three times the range of products that are available at current dark stores.

Sharing trends from Tier II and Tier III cities, Swiggy said it recorded its highest single-day spend by a customer in Thiruvananthapuram, who spent Rs 69,993 on a single order. The highest total spent amount by a single user stood at Rs 3.34 lakh, recorded by an unnamed customer in Dehradun.

The top-selling categories in these cities include fruits and vegetables, snacks, fairy, bread, eggs and more. Onions were the most ordered items in smaller towns, followed by tomatoes and coriander.

Patna became the fastest city to reach more than 1,000 daily orders, achieving the milestone just four days after Swiggy Instamart’s launch in the city. Raipur became the first city to hit 300 orders on its launch day. "Hubli achieved the highest order value on its launch day, with a single order of wireless earphones worth Rs 8,980," Swiggy added.

Swiggy Instamart CEO Amitesh Jha said in the last one year, the company has noted significant traction for convenience-led retail, much beyond Indian metros. “Our expansion to 100 cities strengthens our reach and allows us to better serve growing consumer needs in underserved geographies," Swiggy CEO said, adding that both consumer behaviour and value-proposition of quick-commerce have evolved.

Swiggy shares were trading flat at Rs 355.60 apiece on March 17. The stock is currently hovering near its 52-week low of Rs 317 per share, and is significantly lower than its 52-week high of Rs 617 per share.