The shift could give Instamart greater control over stock, improve product availability, and help Swiggy improve margins as it competes with Blinkit.
Swiggy is preparing to move Instamart from its current marketplace structure to an inventory-led model, bringing the quick-commerce business closer to the structure used by rival Blinkit.
The shift follows shareholder approval to cap aggregate foreign ownership in Swiggy at 49.5% of paid-up equity, allowing the company to qualify as an Indian-Owned and Controlled Company, or IOCC, under India’s foreign exchange rules.
That status is important because it allows Instamart to own inventory and sell products directly to consumers in categories where foreign-owned companies face restrictions.
From marketplace to inventory
Instamart has operated as a marketplace since launching in August 2020.
Under the current structure, products stored in Instamart’s dark stores legally belong to third-party sellers. Swiggy provides the platform and delivery infrastructure while earning a commission.
An inventory-led model changes that relationship.
Swiggy would purchase products directly from brands and manufacturers, own the inventory, and sell those products to customers.
That would give Instamart greater control over:
- Product assortment
- Purchase prices
- Stock availability
- Promotions
- Inventory management
- Supplier relationships
The model could also improve purchasing economics because Instamart would be able to negotiate directly with brands and manufacturers and buy at scale.
Anand Rathi analyst Shobit Singhal told Reuters that bulk purchasing, greater use of data with brand partners and lower wastage could be among the benefits.
Why Swiggy needs the change
Quick commerce is a low-margin business where product availability, purchasing costs and inventory efficiency can make a significant difference.
Owning inventory gives Instamart more control over what reaches its dark stores and how much it pays for those products.
It could also allow Swiggy to prioritise categories with stronger margins and use customer data more directly when negotiating with suppliers.
But there is a trade-off.
With ownership comes inventory risk. Unsold or perishable products become Swiggy’s responsibility rather than that of third-party sellers.
Swiggy has been preparing for the transition
The move has been developing for more than a year.
Swiggy launched a standalone Instamart app in early 2025, giving the quick-commerce business a separate identity.
In September 2025, it moved Instamart into an indirect step-down wholly owned subsidiary, Swiggy Instamart Private Limited.
CFO Rahul Bothra had also indicated during the company’s October 2025 earnings call that Instamart would eventually transition to an inventory-led structure.
Swiggy later sought shareholder approval to amend its articles of association and adjust its board nomination framework to meet IOCC requirements.
The company has said the transition could take two to four quarters once the remaining regulatory and corporate steps are completed.
Revenue could jump without the business tripling
There is an important accounting point behind the transition.
Under the marketplace model, Swiggy primarily records the commission it earns from transactions.
Under the inventory-led model, it can record the full value of products sold as revenue.
That means reported revenue can rise dramatically even if the underlying level of customer activity does not increase by the same amount.
Blinkit’s experience illustrates the effect.
After Eternal became an IOCC in April 2025 and Blinkit switched to an inventory-led model in September, Blinkit’s Q4 FY26 revenue jumped 674% year-on-year to Rs 13,232 crore, while its net order value increased by roughly 95%.
The enormous revenue increase was therefore not equivalent to a 674% expansion in the underlying business. A substantial part came from the change in how transactions were accounted for.
Instamart could see a similar effect.
Its adjusted revenue stood at Rs 1,090 crore in the same quarter, up 48.7% year-on-year. Once Instamart adopts the inventory-led structure, its reported revenue could increase sharply because the company would recognise the value of goods sold rather than just its marketplace economics.
The real test will be margins.
The headline revenue increase will be easy to notice.
The more important question will be whether Instamart can use greater control over purchasing and inventory to improve its unit economics and margins.
Swiggy is entering an increasingly intense quick-commerce battle with Blinkit and other players.
Moving inventory in-house gives Instamart another lever in that competition. But it also puts more operational responsibility and inventory risk directly on Swiggy.
The accounting numbers may get much bigger.
The real victory will come only if the economics get better too.
