Swiggy’s quick commerce arm Instamart, which holds the second-highest market share in the segment, is about half the size of Zomato’s quick commerce arm Blinkit, in terms of gross order value (GOV).
Swiggy’s updated draft red herring prospectus filed with the exchanges on Thursday, show that during the April-June quarter, Instamart’s GOV stands at Rs 2,724 crore, which is about 55% of Blinkit’s GOV of Rs 4,923 crore.
Blinkit leads in the quick commerce segment with an estimated market share of 40-45%, according to a UBS research report from August, followed by Instamart which holds a 20-25% share. Y-combinator-backed Zepto comes next with a share of 15-20%, followed by Big Basket’s BBNow at 10-15%.
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There’s also a significant difference in revenue and profitability of Blinkit and Instamart, though the two have similar scale of operations. While Blinkit is operational in 44 cities across the country and has 639 dark stores or micro-fulfillment centres, Instamart is present in 43 cities and manages a network of 605 dark stores.
But when it comes to revenues, Instamart’s June quarter revenue is at about 40% of Blinkit’s during the same three month period. Instamart’s revenue from operations stood at Rs 374 crore, compared to Blinkit’s Rs 942 crore. While Blinkit had turned contribution positive in the second quarter of FY24 and has a contribution margin of 4% in Q1FY25, Instamart is still in the red. As of Q1, its contribution margin stood at a negative of 3.18%.
The same translated to an adjusted Ebitda of negative Rs 3 crore for Blinkit while that of Instamart stood at a negative Rs 317.9 crore.
In terms of the number of orders on the platform, Instamart’s 55.9 million orders in Q1 lag Blinkit’s 78.8 million during the same quarter. Instamart’s average order value stands at Rs 487, compared to Blinkit’s Rs 625. Moreover, the average number of transacting customers in a month is 7.6 million on Blinkit, while the same on Instamart is 5.24 million, as of June quarter.
On a full-year basis, Instamart’s revenue stood at Rs 978.5 crore in FY24, compared to Blinkit’s over Rs 2,300 crore.
Besides the quick commerce business, the gross order value of Swiggy’s food delivery operations also lags that of Zomato. Swiggy’s food delivery GOV stood at Rs 6,808 crore in Q1, compared to Zomato’s Rs 9,264 crore. Revenue from Swiggy’s food delivery arm was Rs 1,518 crore, compared to Zomato’s adjusted revenue of Rs 2,256 crore. Adjusted revenue includes customer delivery charges net of any discounts plus the platform fee.
From: financialexpress
Financial News
