Why Swiggy's Instamart is facing a slowdown in growth
What's the story
Swiggy's quick commerce business, Instamart, witnessed a slowdown in growth during the fourth quarter of FY26. The development comes as the company adopts a cautious approach in an increasingly competitive market. The gross order value (GOV) for Instamart fell from ₹7,938 crore in Q3 FY26 to ₹7,881 crore in Q4 FY26. This is the first sequential decline for Instamart at 0.7%.
Yearly comparison
Year-on-year growth for Instamart
On a year-on-year basis, Instamart's GOV grew by 69% from ₹4,670 crore in Q4 FY25 to ₹7,881 crore in Q4 FY26. This is a significant increase that highlights the overall growth trajectory of the business over the past year. However, it also indicates that the latest quarter was not as strong as previous ones when compared to last year's performance.
Insight
Swiggy's Group CEO on competition and growth strategy
Swiggy's Group CEO and Co-founder, Sriharsha Majety, explained the company's growth strategy in light of rising competition. He said that "a platform's growth choices should be indexed on economics versus absolute volume increase." This means that while it is possible to grow significantly higher volumes in the short term in a large addressable market, the sustainability of such an approach is questionable due to high operating variable costs and expiration dates attached to higher-than-sustainable consumer inducements.
Market strategy
Changes in incentive structures and strategy shifts
Instamart also rolled back incentives such as the no-fee campaign in January this year. The decision comes as several quick commerce players, including Blinkit, Zepto, Amazon Now, Flipkart Minutes and Tata's BigBasket, are all vying for a bigger slice of the market. In his annual shareholder letter, Majety said their strategy is to build a unique and sustainable business by positioning Instamart as a destination for everyday upgrades rather than just essentials.