Over two months after attaining the IOCC (Indian-Owned and Controlled Company) tag, Swiggy announced that it will shortly commence transitioning its quick commerce business, Instamart, to an inventory-led model. 

In its Q2 shareholders letter, the company announced that it will pivot Instamart to the inventory model by mid-Q3 FY27. The transition is expected to take 2-3 quarters to complete. Swiggy expects the transition to improve Instamart’s working capital cycle by 8-10 days. 

“As we have mentioned in our previous communications, this has the potential to add 80 bps to Instamart’s contribution margin when fully rolled-out while giving us greater flexibility and control over assortment, pricing, availability and day-to-day operations,” the company said.

The inventory model will give Instamart greater control over product assortment, pricing, availability and day-to-day operations in comparison to its current model where Instamart operates as a marketplace hosting seller entities. 

Eternal’s quick commerce arm Blinkit was the first to complete the inventory-led model pivot. The company has seen a significant improvement in its bottom line performance since then. Blinkit has emerged as the largest revenue contributor for Eternal, contributing ₹19,152 Cr to the company’s total ₹24,138 Cr operating revenue for Q2 FY27.

Swiggy has been bidding to undertake a similar transition for some time now. Its initial May 2026 special resolution to become an IOCC failed after receiving 72.36% of shareholder votes in favor, narrowly missing the required 75% threshold

It managed to get shareholder approval to enable the transition earlier in August . Today, the company said its domestic ownership has increased to over 58%.

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