Instamart, Swiggy’s quick grocery delivery service, is looking to add 100 million users on its platform in the next four-to-five years backed by increasing penetration in existing markets, addition of new markets and widening of its product offerings. It currently has close to nine million users who have transacted on the platform.
The company is hopeful of touching an annualized GMV (gross merchandise value) run rate of around $ 1 billion by the end of current fiscal.
E-commerce to grow by 10-15x
India’s quick commerce market is set to witness a 10-15x growth by 2025, reaching a market size of close to $5.5 billion, leading other markets (including China), says a recent study by Redseer Consulting.
The total addressable market for quick commerce in the country stands at around 45 billion, and metro and Tier I cities drive this market on the back of mid-high-income households. The convenience and speed of quick commerce are key reasons why customers prefer it and the usage is likely to soar upwards, the study said.
According to Karthik Gurumurthy, Senior Vice President, Instamart, the platform has recorded close to 16x growth over the last one year and there is a huge opportunity for growth. Instamart services are currently available across 29 cities. While it may look to add one or two more cities moving forward, the primary aim would be to strengthen its presence in its existing markets.
“There are a large number of Swiggy users who have still not transacted on Instamart so there is a scope to convert them (into Instamart users). We are also looking for cross pollination (cross selling of products) across categories,” Gurumurthy said at a press conference in the city on Wednesday.
To add new categories
Instamart is currently servicing around 95-98 per cent of the households where it is present. This means there are a large number of Swiggy users who have still not transacted on Instamart platform as yet. The aim would be to get them to use the platform. In Kolkata for instance, Instamart serves around 93 per cent of the households in the city, he said, highlighting the potential to tap more.
This apart, Instamart would also look to add more product categories which are currently not available on its platform. It currently has over 500 brands and close to 5,000 products on its platform.
“There is a huge requirement for newer categories such as basic electricals and electronics and some regular consumption low involvement household items,” he said.