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Swiggy Instamart starts 24x7 free delivery in Delhi NCR for festival season

The quick commerce platform aims to meet growing demand by offering rapid delivery of thousands of products within 10-15 minutes, day and night, in Delhi, Gurgaon, and Noida, the company said

Swiggy

(Photo: Bloomberg)

Aryaman Gupta New Delhi

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IPO-bound online food delivery company Swiggy’s quick commerce arm Instamart has launched a 24x7 free delivery for all customers in Delhi-National Capital Region (NCR) to capitalise on the anticipated uptick in demand during the festival season.

The quick commerce platform is aiming to meet the growing demand by offering rapid delivery of thousands of products within 10-15 minutes 24x7 in Delhi, Gurgaon, and Noida, the company said.

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The company says it has observed that the demand for essentials not only continues, but increases once the shutters go down in the late hours, especially during the bustling festive season filled with last-minute preparations.
 

According to Swiggy, during the festive season, especially around celebratory occasions such as Diwali parties, customers order throughout the night.

Swiggy Instamart's order analysis reveals that late-night orders for indulgences like chips, bhujia, and ice creams, sexual wellness products, and pan corner essentials continue to come between 11 PM and 6 AM. As the night fades, the focus of the orders shifts to breakfast staples such as milk and eggs.

This comes at a time when Swiggy is doubling down on expanding its quick commerce arm. The company recently filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) that is expected to be worth around Rs 10,000 crore. The company is planning to raise Rs 3,750 crore via a fresh issue.

Following the IPO, the food delivery major is planning to use as much as Rs 982 crore – roughly 27 per cent of the IPO proceeds – to expand Instamart’s dark store network via its subsidiary Scootsy.

As of June 30, the company operated 581 dark stores ranging in size from 1,400 to 10,000 sq ft.

In the first quarter (Q1) of financial year 2025 (FY25), Instamart’s gross order value (GOV) grew 56 per cent year-on-year (Y-o-Y) to Rs 2,724 crore. In contrast, its food delivery GOV grew by 14 per cent Y-o-Y to Rs 6,808 crore. The quick commerce vertical’s GOV is already at 40 per cent of food delivery GOV, despite being launched six years later.

Meanwhile, Instamart's average order value (AOV), at Rs 487, has surpassed the food delivery AOV, which stood at Rs 487 in the June quarter.

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First Published: Sep 30 2024 | 6:46 PM IST

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