MediaNama’s Take:
Foodtech decacorn Swiggy is hiving off its quick commerce business Instamart into a separate entity. While the Sriharsha Majety-led company has not provided a strategic rationale behind this move, it will pave the way for Instamart to raise capital independently and fund its growth ambitions.
Furthermore, it also provides Instamart an opportunity to constitute a new Board of Directors solely focused on scaling Swiggy’s quick commerce business. There is also precedent to consider. Rival Blinkit already has a Board of Directors, comprising cofounders Albinder Dhindsa and Rishi Arora, along with independent directors—Ali Kausar Siddiqui, Ruby Hemant Kumar Jain, and Kaushik Dutta.
For Swiggy, the decision to hive off Instamart is expected to result in hefty one-time gains on account of the slump sale, while also opening up the doors to a potential spin-off of its quick commerce arm in the future. A case in point is digital payments platform PhonePe, which emerged from e-commerce giant Flipkart back in 2020.
Carving out Instamart as a separate entity will also allow Swiggy to completely focus on its food delivery segment, where it has been witnessing a revenue slowdown, and experimenting with new services such as ‘toing‘ and ‘giftables’.
What’s the News?
Food and grocery delivery company Swiggy said on September 23, 2025, that it has received approval from its board to hive off its quick commerce arm Instamart into a separate, wholly-owned subsidiary via a slump sale.
As part of the plan, the company will be transferring all assets, liabilities, employees, permits, contracts and intellectual property related to its quick commerce business to Swiggy Instamart Private Limited, an indirect step-down wholly owned subsidiary incorporated in India.
According to the regulatory filings made by Swiggy, the slump sale is subject to approval from its shareholders, with the transaction expected to be completed after the December quarter of the financial year 2025-26 (Q3FY26).
“Instamart has experienced rapid expansion over the past 3 years. In Q1FY26, our quick commerce business continued to accelerate, recording 108% year-on-year growth in gross order value (GOV). Instamart has also emerged from the shadows of Swiggy’s food delivery business to become a standalone brand, with its GOV and user base slated for food delivery business in the near future,” a Swiggy spokesperson told MediaNama.
Swiggy will receive a lump sum cash from the subsidiary post-transfer, which will be based on the book value of assets and liabilities of Instamart. To put things into perspective, Instamart had a negative net worth of Rs 297.6 crore as on March 31, 2025.
Why This Matters
The restructuring comes at a time when quick commerce has become a key growth engine for foodtech giants Swiggy and Eternal. In FY25, Instamart reported Rs 2,129.58 crore in revenue, making up over 24% of the Swiggy’s…
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