Swiggy Instamart eyeing 100 million user base in next 4-5 years

Instamart, Swiggy’s quick commerce grocery delivery service, is eyeing a 100 million user base in the next 4-5 years.

Karthik Gurumurthy, senior vice president, Instamart, said that over the last one year, Instamart had a 16X growth in business. “So we genuinely think, it can be a 100 million base.” Instamart had 9 million ever transacting users as of August 2022. 

Launched in 2020, Instamart has increased its presence to over 25 cities since. In 2021, $700 million investment was committed for growing Instamart and earlier this year, Swiggy raised the amount led by Invesco. Gurumurthy’s confidence in achieving the growth numbers is backed by the rise in disposable income and a growing middle class.

The quick commerce market was also poised for growth. According to a Redseer report in March, India’s quick commerce market was poised for 10-15X growth by 2025, reaching a market size of close to $5.5 billion. Instamart was on track to achieve $1 billion gross merchandise value (GMV) this fiscal year, said Gurumurthy.

The growth strategies are in place. “We still see that there are a lot of Swiggy users who have not transacted on Instamart. So how do we become more relevant to them and make them transact –we don’t have to do much for this because they are already on the Swiggy platform,” pointed out Gurumurthy.

Cross-pollination within the categories and newer categories are among the other pillars of growth.

“There is a huge demand for basic electricals and electronics and regular consumption items, very low-involvement household purchases. These are areas where we are seeing more and more demand,” Gurumurthy said.

There are more than 500 brands and 5,000 products on the platform currently.