The rapid commerce division of foodtech behemoth Swiggy, Instamart, has introduced its 24-hour delivery service in Delhi NCR as the holiday season draws near. This new service is designed to satisfy the increasing demand in Delhi, Gurugram, and Noida for necessities and snacks throughout the hectic holiday season, appealing to both early risers and night owls.
Expanding Services to Meet Festive Demand
The choice by Swiggy Instamart to launch a 24-hour service coincides with the holidays, when there is usually a rise in consumer spending. The company claims that during festivals, demand for late-night snacks including chips, bhujia, ice creams, products for sexual wellbeing, and “pan corner essentials” increases dramatically between 11 PM and 6 AM. This information is based on internal order data. Furthermore, requests for necessities like milk, eggs, and breakfast staples increase in the morning, thus offering 24×7 delivery is a calculated step to improve customer convenience during these busy times.
Competing in the Quick Commerce Race
The introduction of Swiggy Instamart’s round-the-clock service coincides with heightened rivalry in the rapid commerce industry. Flipkart recently entered the market with its own quick commerce arm, Flipkart Minutes, offering free delivery for orders above INR 99 and a platform fee of just INR 5. In addition to taking on Flipkart Minutes, Swiggy’s new service also goes up against other well-known competitors like Blinkit, which is owned by Zomato, and Zepto. For these firms, the holiday season is critical since it typically sees a spike in consumer spending, especially on food, drink, and holiday shopping.
Swiggy’s IPO and Financial Performance
The introduction of the round-the-clock service falls in line with Swiggy’s getting ready for its much-awaited IPO. The Securities and Exchange Board of India (SEBI) received an updated draft red herring prospectus (DRHP) from the Bengaluru-based Decacorn. A new issue of shares valued at INR 3,750 crore and an offer for sale (OFS) of 18.53 crore equity shares are also part of the IPO. For the business, this offering will mark a significant turning point as it seeks to raise money and increase its market share.
Financial Update: Swiggy’s Performance in Q1 FY25
Swiggy has encountered some financial difficulties as it prepares for its initial public offering. Swiggy reported a net loss of INR 605.7 crore in the first quarter of the financial year 2024–25 (FY25), a 7% rise over the INR 562.8 crore loss reported in the same period of the previous fiscal year. Swiggy’s operating revenue increased significantly by about 35% in the most recent quarter, from INR 2,389.8 crore in Q1 FY24 to INR 3,222.2 crore, despite this widening deficit. Swiggy’s growing market traction is highlighted by this revenue rise, despite the company’s efforts to increase profitability.
Positioning for Long-Term Growth
Swiggy Instamart is positioned itself as a major participant in the rapid commerce business during the critical holiday season with the debut of its 24×7 service. In addition to meeting the changing needs of its clientele, the company’s move into 24-hour delivery will help it maintain its competitiveness in a rapidly changing industry. This most recent action highlights Swiggy’s dedication to improving its service offerings and preserving its leadership in India’s thriving foodtech and fast commerce industries as the firm gets ready for its IPO and grows its revenue.
