Swiggy shareholders approve change allowing Instamart to shift to inventory model.
Blinkit's similar shift led to five straight quarters of margin gains.
Swiggy targets positive EPS by fiscal 2031.
Swiggy shareholders have approved a change to the company's foreign ownership structure, opening the door for its quick-commerce arm Instamart to move toward an inventory-led model. The shift could help Instamart compete more closely with market leader Blinkit in India's fast-growing quick-commerce space, according to a Reuters report
Instamart has run on a marketplace model since its August 2020 launch, earning commissions on products sold through India's $11.5 billion quick-commerce market. With shareholder approval now in place, Prosus-backed Swiggy qualifies as an Indian-owned and controlled company, a status required under India's foreign investment rules for holding inventory directly.
1 August 2026
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Analysts cited in the report said an inventory-led approach could improve Instamart's margins, particularly in higher-value product categories, while giving the company more control over pricing, product assortment and supply chains. Swiggy has said the transition could add roughly 80 basis points to Instamart's contribution margin. The unit's contribution margin stood at negative 0.2% in the first quarter, an improvement from negative 1.8% in the previous quarter.
Eternal's Blinkit made a similar shift to an inventory-led model last year and has posted margin improvement for five consecutive quarters, turning positive in the March 2026 quarter. Eternal attributed the gains to inventory ownership, supply-chain efficiencies and expansion into higher-margin categories such as electronics, home decor and gourmet foods.
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Swiggy, which listed publicly in 2024, remains unprofitable. Earlier this month, it set a target to achieve positive earnings per share by fiscal 2031. Brokerage Jefferies noted that the shift to inventory ownership would require higher working capital to fund purchases and manage stock. Eternal had said last month that working capital at Blinkit was "largely driven by inventory ownership."
Swiggy and Eternal have been investing heavily to expand beyond groceries into higher-margin categories, competing against rivals including Amazon India, Flipkart and Reliance. Smaller player Zepto is also looking to raise up to $837 million through a public listing this year.
