In India’s fiercely competitive food delivery and quick commerce space, Swiggy’s Instamart is turning out to be more than just a grocery delivery service — it’s rapidly becoming the key differentiator in Swiggy’s battle against Zomato and Blinkit.
A recent research report by BNP Paribas says that Instamart is no longer an underdog. The quick commerce vertical has evolved into a strategic asset that could define Swiggy’s long-term market leadership and profitability.
📈 What BNP Paribas Report Reveals
According to the global brokerage:
Instamart contributes ~30% of Swiggy’s overall revenue
The platform grew 42% YoY in FY24, outpacing food delivery
Unit economics have improved with AOV (average order value) at ₹475+
Gross margin profile is closing in on Blinkit’s, thanks to warehouse optimization
Higher repeat orders and strong penetration in metros are boosting retention
“Instamart is proving to be Swiggy’s secret weapon in scaling operations beyond food delivery. It’s fast, sticky, and margins are improving,” said the BNP Paribas analyst.
🛒 Instamart vs Blinkit: Who’s Winning the Q-Commerce Race?
| Feature | Swiggy Instamart | Zomato Blinkit |
|---|---|---|
| Avg Order Value (AOV) | ₹475+ | ₹550+ |
| Active Cities | 25+ | 25+ |
| Dark Store Network | 400+ | 500+ |
| Profitability Target | FY26 (estimated) | Q4 FY25 (guided by Zomato) |
| Parent Brand Strength | Swiggy | Zomato |
| Customer Retention Focus | High in metro cities | High across Tier 1 & 2 cities |
While Blinkit holds a slight edge in scale, Instamart’s growth velocity and improving margins suggest that the race is far from over.
💼 Strategic Implications for Swiggy
IPO readiness: Instamart’s growth improves Swiggy’s path to profitability — a major concern ahead of its anticipated IPO in 2025–26.
Differentiation from Zomato: Zomato lacks a food-plus-grocery synergy outside Blinkit. Swiggy’s dual-engine model is gaining appeal.
Brand loyalty: Instamart helps Swiggy retain customers by serving daily needs beyond food — boosting app stickiness
❓ FAQ Section
Q1: What is Instamart and how does it compare to Blinkit?
A: Instamart is Swiggy’s quick commerce vertical offering 10–30 minute grocery delivery. It competes directly with Zomato’s Blinkit in India’s fast-growing Q-commerce segment.
Q2: What does BNP Paribas say about Instamart?
A: The report states Instamart has become a significant growth engine for Swiggy, improving revenue share, margins, and unit economics.
Q3: How much does Instamart contribute to Swiggy’s overall business?
A: Instamart contributes roughly 30% of Swiggy’s total revenue, a notable jump from previous years.
Q4: Is Swiggy more profitable than Zomato?
A: Not yet. Zomato turned profitable in 2023, while Swiggy aims to achieve profitability across verticals by FY26, with Instamart playing a key role.
Q5: Will Instamart be part of Swiggy’s IPO?
A: Yes, Instamart will be a core part of Swiggy’s IPO story, likely bundled under the main business or as a featured vertical.
Q6: Which platform is better for customers — Instamart or Blinkit?
A: Both offer similar services, but user preference depends on delivery speed, product availability, discounts, and city-wise presence.
Follow us on social media: Facebook || Linkedin || Instagram
Reported by Benny on June 23, 2025.
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed