Blinkit and Zepto Surge Ahead of Swiggy Instamart in Quick Commerce, Says Citi Report
Blinkit and Zepto Surge : India’s quick commerce sector is witnessing a fierce battle for market dominance, with Blinkit and Zepto surging ahead of Swiggy Instamart in terms of market share. According to Citi’s latest report, Swiggy Instamart is struggling to keep pace with its rivals in this high-growth segment.
Blinkit Leads the Market, Zepto Gains Momentum
Citi’s report estimates Blinkit’s market share at a commanding 41%, while Swiggy Instamart lags behind at 23%. Although the report does not specify Zepto’s market share, industry analysts suggest that the company has either surpassed or is at least on par with Swiggy.
A separate study by Motilal Oswal in November 2024 had pegged Blinkit’s market share at 46%, Zepto at 29%, and Swiggy Instamart at 25%. This indicates that Swiggy has been steadily losing ground to Zepto over time.
The competition in the sector is intensifying as companies ramp up operations to secure a larger share of India’s booming quick commerce industry.
Why Swiggy Instamart is Falling Behind
The Citi report highlights key challenges for Swiggy Instamart, including:
- Higher Cash Burn Rate: Swiggy is struggling with unit economics, making it harder to match the customer acquisition pace of Blinkit and Zepto.
- Lower Average Order Value (AOV): Competitors have been more effective in increasing their AOV, improving profitability.
- Supply Chain Cost Reductions: Swiggy still needs to optimize its supply chain to cut costs and enhance operational efficiency.
Expansion Plans: Who Will Dominate?
With rapid expansion being a key growth driver, Blinkit, Zepto, and Swiggy Instamart are aggressively increasing their presence across India.
| Company | Current Dark Stores (Q3 FY25) | Target Dark Stores (FY25-End) |
|---|---|---|
| Blinkit | 1,007 | 2,000 by December 2025 |
| Zepto | ~750 | 1,200 by March 2025 |
| Swiggy Instamart | 705 | 1,000 by March 2025 |
Blinkit is leading in store count, while Zepto is expanding aggressively. Swiggy Instamart, despite its slower growth, aims to hit 1,000 stores by March.
Zepto’s Surge in Gross Order Value (GOV)
Zepto’s rise in quick commerce is reflected in its tripling Gross Order Value (GOV) over the last eight months to $3 billion (~Rs 24,500 crore). This puts it on par with Blinkit, which reported a GOV of Rs 6,132 crore in Q2 FY25 (annualized ~Rs 24,528 crore).
Swiggy Instamart, however, lags with a GOV of Rs 3,382 crore in Q2 FY25, translating to an annualized GOV of around Rs 13,528 crore.
| Company | Q2 FY25 GOV (in ₹ crore) | Annualized GOV (in ₹ crore) |
|---|---|---|
| Blinkit | 6,132 | 24,528 |
| Zepto | ~6,125 | ~24,500 |
| Swiggy Instamart | 3,382 | 13,528 |
Despite Zepto’s lower market share, its GOV suggests it is operating at a larger scale than Swiggy Instamart.
The Road Ahead for Swiggy Instamart
Despite falling behind, analysts believe Swiggy Instamart has key advantages that could help it sustain competition:
- Platform Synergies: Swiggy’s ecosystem benefits from shared infrastructure, including its fleet of delivery partners.
- First-Mover Advantage: Swiggy has strong supply chain technology and a well-established network.
- Market Growth Potential: The quick commerce sector is expected to hit a $9 billion annualized GOV run rate by FY25 for the top three players and grow to $26 billion by FY28E, with a 73% CAGR.
Conclusion
With Blinkit firmly leading the quick commerce race and Zepto catching up rapidly, Swiggy Instamart finds itself in a tough spot. However, its platform strengths and expansion plans could help it regain lost ground.
As competition peaks over the next two quarters, it remains to be seen whether Swiggy Instamart can close the gap or if Blinkit and Zepto will continue to dominate India’s fast-growing quick commerce market.
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