Swiggy’s Instamart expands its reach, now available in 100 cities; stock gains 2%

Shares of Swiggy, one of India's leading food delivery aggregators, gained nearly 2% in intraday trade on Monday, March 17, to ₹359.30 apiece after the company announced that its Quick Commerce platform, Instamart, has expanded to 100 cities across India.

In its filing to the exchanges, the company stated that Instamart, which was launched in August 2020, has now entered 100 cities nationwide, a milestone achieved in response to the growing demand for 10-minute deliveries, particularly in Tier-2 and Tier-3 cities.

So far this month, the company has introduced quick commerce to 32 new cities, including Raipur, Siliguri, Jodhpur, and Thanjavur, bringing the convenience of rapid deliveries to many for the first time.

With this expansion, the company stated that millions of new customers now have access to over 30,000 products, ranging from groceries and daily essentials to electronics, smartphones, fashion, makeup, toys, and more—all delivered in just 10 minutes.

The growing competition in the quick commerce space, with new entrants like Flipkart and Amazon, is prompting both Swiggy and Zomato to expand their dark store network across urban cities.

Speaking on the milestone, Amitesh Jha, CEO of Swiggy Instamart, said, “Over the past year, millions of Indians have turned to Swiggy Instamart for everything from groceries and essentials to festive and everyday needs. We have noted that there is significant traction for convenience-led retail much beyond Indian metros, as both consumer behavior and the value proposition of quick commerce evolve in tandem. Our expansion to 100 cities strengthens our reach and allows us to better serve growing consumer needs in underserved geographies.”

"In 2025, one in four new users came from tier 2 or 3 cities, underscoring the growing demand for quick commerce. With this growth, we’re excited to bring the same level of convenience, choice, and value to a much wider base of customers. We’re also proud to support the local ecosystem by empowering dark store staff and delivery partners to help make these products accessible," he further added.

Swiggy stock falls 43% from peak, but analysts remain bullish

Swiggy's share price has remained under pressure in recent months, correcting 43% from its peak and 8% below the IPO price of ₹390. Heightening competition in the quick commerce (QC) space and concerns over lofty valuations have put the stock in a downward spiral.

However, analysts remain bullish on the counter, citing the long-term potential of the QC space. They believe that emerging competition in quick commerce is unlikely to significantly impact incumbents.

They also view the recent correction as an opportunity, suggesting that the stock’s current valuation has reached a more comfortable level. Domestic brokerage firm JM Financial has a 'buy' rating on the stock with a target price of ₹500 apiece, indicating an upside potential of 34.6% from its latest closing price.

Likewise, ICICI Securities has also retained its 'buy' call on Swiggy, with a target price of ₹740 per share. The brokerage’s SoTP-based methodology values the food delivery segment at ₹99,800 crore and the quick commerce segment at ₹42,800 crore.

Earlier last week, global brokerage firm Jefferies initiated coverage on Swiggy, assigning a 'hold' rating with a price target of ₹400.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.