Swiggy to hive off Instamart into separate, wholly owned subsidiary via slump sale

Instamart has become a significant contributor to Swiggy’s topline

Food and grocery delivery major Swiggy will hive off its quick commerce arm Instamart into a separate subsidiary through a slump sale, according to regulatory filings made by the company on September 23.

The business — including all assets, liabilities, employees, permits, contracts and intellectual property — will be transferred to Swiggy Instamart Private Limited, an indirect step-down wholly owned subsidiary incorporated in India, the company said.

The slump sale is subject to shareholder approval and is expected to close after the third quarter of FY26, once customary conditions are met. While Swiggy has not provided a strategic rationale in the filing, the move may pave the way for clearer financial reporting and could also give the company flexibility for future fundraising or a potential spin-off.

"Instamart has experienced rapid expansion over the past 3 years. In Q1 of FY 2025-26, our Quick-commerce business continued to accelerate, recording 108% year-on-year growth in gross order value. Instamart has also emerged from the shadow of Swiggy’s food delivery business to become a standalone brand, with its gross order value and user base slated to exceed food delivery business in the near future," said a Swiggy spokesperson.

The subsidiary structure is designed to support this growth momentum by providing sharper strategic focus, operational flexibility, and enhanced transparency, while ensuring full ownership remains with the listed parent company," the spokesperson added.

Instamart has become a significant contributor to Swiggy’s topline. The business reported Rs 2,129.6 crore in revenue in FY25, making up 24.2 percent of Swiggy’s standalone revenue. However, it continues to bleed, with a negative net worth of Rs 297.7 crore as of March 31, 2025.

The transaction will be executed at the book value of assets and liabilities of Instamart as of the effective date. Since Instamart’s book value was negative at the end of FY25, the transfer price will not reflect the business’s market potential but will ring-fence its operations within a separate corporate structure.

Swiggy will receive a lump-sum cash consideration from the subsidiary once the transfer is completed.

The restructuring comes at a time when quick commerce is increasingly being carved out as a standalone growth engine by listed food-tech players.

Rival Zomato, which acquired Blinkit in 2022, has been disclosing Blinkit’s financials separately each quarter. Blinkit contributed around 32 percent of Zomato’s consolidated revenue in Q1 FY26, with losses narrowing on a contribution margin basis.

By creating a dedicated subsidiary for Instamart, Swiggy may be aiming to provide similar visibility on its quick commerce business while retaining optionality for future capital raising.

Quick commerce has become the new battleground for food-tech majors, with Zomato, Swiggy, Flipkart and Amazon ramping up dark store networks and delivery fleets. While the category has delivered rapid growth, its heavy cash burn means corporate structuring is becoming an important lever for listed companies to reassure public market investors.

Swiggy's shares changed hands at Rs 449.15 apiece on the BSE, down 0.04 percent, at the close of market hours on September 23.