Swiggy to transfer Instamart to wholly owned subsidiary via slump sale

Swiggy approved the transfer of its Instamart quick commerce business to Swiggy Instamart Pvt Ltd through a slump sale to create a focused entity for long-term growth

In a restructuring move, food delivery and instant grocery platform Swiggy on Tuesday said its board has approved the sale and transfer of its quick commerce (q-commerce) business Instamart, through a slump sale, to an indirect, step-down wholly owned subsidiary, Swiggy Instamart Pvt Ltd.

 

“The Board of the Company has approved the slump sale of the Instamart undertaking of the Company today, i.e. Tuesday, 23 September 2025, including authority to directors and officers of the Company to enter into a business transfer agreement (BTA) and other related documents to give effect to the transaction,” the stock filing read.

 

The slump sale is expected to be completed after the end of the third quarter of FY26. The sale includes all relevant assets, liabilities, permits and licences, records, intellectual property, employees and contracts, the company said.

 

On the rationale for the slump sale, Swiggy said: “The proposed transfer is aimed at developing a focused, efficient and strategically aligned corporate entity for the long-term development and performance of the Instamart business, along with enhanced flexibility in deployment of resources.” It added that there will be no change in the shareholding pattern of the company post the slump sale.

 

In addition, the transaction will be based on the book value of assets and liabilities of Instamart as of the effective date.

 

The revenue from the q-commerce business in FY25 contributed 24.21 per cent of Swiggy’s standalone revenue. 

Commenting on the development, a Swiggy spokesperson said, "Instamart has experienced rapid expansion over the past 3 years. In Q1 of FY25-26, our Quick-commerce business continued to accelerate, recording 108% year-on-year growth in gross order value. Instamart has also emerged from the shadow of Swiggy’s food delivery business to become a standalone brand, with its gross order value and user base slated to exceed food delivery business in the near future. The subsidiary structure is designed to support this growth momentum by providing sharper strategic focus, operational flexibility, and enhanced transparency, while ensuring full ownership remains with the listed parent company."