Swiggy's Instamart now has 9 million users

25 Aug 2022 , 08:24 AM

In the two years since it started operations, Swiggy’s quick commerce grocery service, Instamart, has grown to over 25 cities and is now utilized by 9 million people, according to a top official.

Quick commerce supermarket firms received a lot of venture capital interest during the financing boom last year despite having no established profitable unit economics.

Additionally, there is more pressure on these firms to cut back on cash burn as demand for cash-hungry businesses declines amid global headwinds.

However, due to a delay in late-stage investment, Dunzo, which was funded by Reliance, was altering gears and concentrating more on its spending on August 7.

The online food delivery business set aside $700 million for Instamart in December of last year, but it has managed costs from the start and has decreased its monthly burn.

Instamart intends to deliver groceries in 15 to 30 minutes using a network of seller-owned underground storefronts.

The volume of orders for the hyperlocal grocery service increased by 16 times in the previous year (as of June 2022).

More than 5000 different products are offered by the vendors on Instamart, and it has more than 500 different brands.