Swiggy Limited has approved the transfer of its quick commerce business Instamart to an indirect wholly owned subsidiary, Swiggy Instamart Private Limited, in a restructuring aimed at improving operational efficiency and long-term growth.
The board cleared the transfer on Tuesday, subject to shareholder approval and customary conditions. The transaction will be executed via a slump sale, moving Instamart’s assets, liabilities, licences, intellectual property, employees and contracts to the new unit.
The completion is expected after the third quarter of FY2025-26, once approvals are in place. The board meeting concluded at 6.40 pm on Tuesday.
Instamart reported revenue of Rs 2,129.58 crore in FY2024-25, contributing 24.2 per cent to Swiggy’s standalone revenue. Despite the topline growth, the unit ended the year with a negative net worth of Rs 297.67 crore as on March 31, 2025, or -2.48 per cent of the company’s standalone net worth.
The transfer consideration will be a lump sum cash payment based on the book value of assets and liabilities as on the effective date.
Rationale behind the move
Swiggy said the restructuring will help create a focused corporate entity for Instamart, enabling greater flexibility in resource deployment and sharper strategic alignment. Since the buyer is an indirect step-down subsidiary, the deal qualifies as a related-party transaction but will be carried out at arm’s length, the company clarified.
The transfer will leave Swiggy’s shareholding structure unchanged. Instamart will keep functioning under its current brand, offering groceries and household essentials through its online marketplace.
Broader portfolio remains intact
Besides Instamart, Swiggy continues to operate its core food delivery service, restaurant reservations via Dineout, events marketplace SteppinOut and hyperlocal offerings such as Genie and Minis. The company said the reorganisation will not impact these businesses.
Stock reaction
Swiggy’s shares ended marginally lower after the announcement. The stock closed at Rs 449.15, down 0.04% from the previous close of Rs 449.35. It opened the day at Rs 450.10.
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