CONNECT WITH US
eCommerce

eCommerce

Swiggy to shift to inventory model starting Q3 FY27, eyes 80 bps Instamart margin boost

ET Retail – Ecommerce logo

Published on

Add as a preferred source on Google
Swiggy to shift to inventory model starting Q3 FY27, eyes 80 bps Instamart margin boost

Swiggy to shift to inventory model starting Q3 FY27, eyes 80 bps Instamart margin boost

The transition is likely to improve its quick commerce arm Instamart’s contribution margin by around 80 basis points once fully implemented. It will also give the Bengaluru-based company better control over assortment, pricing, product availability, and day-to-day operations.

Following its transition to an Indian-owned and Controlled Company (IOCC) in August, food and grocery delivery platform Swiggy will begin its shift to an inventory-led business model from the middle of Q3FY27, the company said in a letter to shareholders regarding the September quarter results on Thursday. The process is expected to take two to three quarters to complete. The transition is likely to improve its quick commerce arm Instamart’s contribution margin by around 80 basis points once fully implemented. It will also give the Bengaluru-based company better control over assortment, pricing, product availability, and day-to-day operations. Advt

5% (fully diluted basis) to qualify as an Indian Owned and Controlled entity. The transition will allow Instamart to own inventory, and is expected to complete over the next few quarters, with a net margin benefit of about 80 bps,” cofounder and chief executive Sriharsha Majety said in the letter. On August 18, Swiggy’s shareholders approved a proposal for it to become an IOCC after the company failed to secure the requisite number of votes for the proposal earlier. “We have since taken necessary regulatory approvals and domestic ownership has risen to over 58% on the back of growing appetite among domestic institutional investors,” the company said in the letter.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.