Swiggy to add 437 Instamart dark stores, Q2 losses decline

Firm plans to take dark store count to 1,046 by March as quick commerce competition rises

- Sowmya R.

Newly listed food and grocery delivery firm Swiggy is looking to increase its Instamart dark store count from 609 to nearly 1,046 by March 2025, as well as increase their average size by 30-35% to keep up with the growing demand for wider assortment in the highly competitive quick commerce sector.

In its maiden post-earnings analysts' call on Tuesday, the Bengaluru-based company said it is replacing some of its older, small-format stores sized 2,500-2,800 sq. ft with larger stores sized 3,500-4,500 sq. ft that can house up to 20,000 stock-keeping units (SKUs).

The company will also roll out 'megapods' with an area of 8,000-10,000 sq. ft in top cities, which can house over 50K SKUs, aiming to serve consumers in 10 to 30 minutes with an extended selection of items.

"The (increase in) average store size is largely also because we did have smaller stores to begin with. To be able to meet the growing demand of assortment, it was important for us to do this and hence this transformation is underway," said Sriharsha Majety, managing director and group chief executive officer of Swiggy.