Swiggy To Hive Off Instamart As A Separate Step-Down Subsidiary

Foodtech major Swiggy will hive off its quick commerce arm Instamart into a separate, step-down subsidiary.

In a filing with the exchanges, Swiggy said that its board approved a proposal to transfer all of Instamart’s assets, liabilities, employees, permits, contracts and intellectual property to Swiggy Instamart Private Limited – the foodtech giant’s indirect step-down, wholly owned subsidiary.

The company also said that the sale and transfer of the quick commerce business will be undertaken via a slump sale.

For context, slump sale is a business restructuring method, under which assets are sold together for a lump sum amount without determining the individual values of assets sold.

The company said that the cash consideration will be based on the book value of assets and liabilities of Instamart on the effective date (after Q3 FY26) of the proposed transfer. Swiggy Instamart’s book value stood at INR 297.7 Cr at the end of March 2025.

However, the related-party transaction is still subject to the approval of the company’s shareholders. Swiggy expects the transaction to close post Q3 FY26.

With this deal, Swiggy said that it aims to develop a focussed and efficient quick commerce brand. Creating a separate arm will also enable Swiggy to offer visibility for its quick commerce arm and keep the door open for any future fundraise for Instamart.

“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,” added Swiggy in its filings.

This follows the company launching a separate app for its quick commerce offering Instamart in January this year.

The development also comes at a time when Instamart has become a key part of Swiggy’s consolidated business. The quick commerce arm clocked INR 2,129.6 Cr in revenues in FY25 and contributed 24.2% to Swiggy’s top line.

However, in Q1 FY26, Instamart more than doubled its revenues to INR 806 Cr as compared to INR 374 Cr a year ago. However, losses almost tripled YoY to INR 797 Cr during the quarter under review .

This also comes amid a slew of developments at Swiggy. Just last week, the listed foodtech major launched a new food delivery app ‘toing’ to offer economical meal options to users in select locations of Pune.

Earlier this year, it also launched separate apps for its concierge service ‘Crew’, 15-minute food delivery app Snacc, and services app Pyng.

Swiggy’s shares ended Tuesday’s (September 23) trading session 0.04% lower at INR 449.15 on the BSE.

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