Swiggy boosts Instamart supply chain with big warehouse near Mumbai

Swiggy-owned Scootsy Logistics leases 580,000 sq ft at One K Square in Bhiwandi to strengthen Instamart network

Scootsy Logistics, a subsidiary of food and grocery delivery platform Swiggy, has leased approximately 580,000 square feet of warehousing space at One K Square Logistic Park in Bhiwandi, near Mumbai, marking one of the largest warehousing lease transactions in India so far this year.

 

According to a report by The Economic Times, the lease agreement spans five years with a lock-in for the same period. The monthly rental is pegged at over ₹27.5 per sq ft.

 

This move follows Swiggy’s ₹1,000 crore investment in Scootsy in February, part of its broader strategy to scale Instamart, its quick commerce vertical, as competition intensifies in the grocery delivery segment.

 

Pivot from hyperlocal to centralised fulfilment

Scootsy began as a hyperlocal delivery startup in 2015 before being acquired by Swiggy in 2020. Since the acquisition, its focus has shifted to premium grocery and essentials delivery, operating as a key player in Swiggy’s fulfilment network.

 

The latest warehouse leasing indicates a further shift for Scooty towards large-format centralised warehousing, from its hyperlocal fulfilment roots. The new facility should help the logistics company boost its supply chain operations across Mumbai and adjoining regions, enabling faster stock replenishment and improving inventory control. The expansion should also help the company enhance its last-mile delivery capabilities by integrating central hubs with micro-fulfilment centres.

 

Warehousing demand grows

Demand for warehouse leasing across eight major cities in India grew by 15 per cent in the first quarter of 2025. Nine million sq ft was leased during this period, indicating strong industrial activity driven by demand across diverse occupier sectors, a report by Colliers noted. 

“These are healthy signs of overall growth, reflecting broad-based demand which aligns with domestic macro-economic indicators,” Vijay Ganesh, managing director, industrial & logistics services, at Colliers India, noted.