Image Source: Eshshiv, CC0, via Wikimedia Commons
MUMBAI — Swiggy Limited has announced a significant corporate restructuring, with its Board of Directors approving the sale and transfer of its quick commerce business, Instamart, to an indirect wholly-owned subsidiary.
The move, structured as a slump sale, is intended to create a more focused and efficient entity for the long-term growth of the Instamart brand.
In a regulatory filing, Swiggy confirmed the board’s approval for the transfer of the “Instamart Undertaking” as a going concern to Swiggy Instamart Private Limited.
This undertaking includes all relevant assets, liabilities, licences, intellectual property, employees, and contracts associated with the business.
Financials and Consideration:
The Instamart division is a substantial part of Swiggy’s operations, contributing INR 21,295.84 million in revenue for the fiscal year 2024-2025, which represents 24.21% of the company’s total standalone revenue.
However, the division’s net worth as of 31 March 2025 was negative, standing at INR (2,976.66) million.
The consideration for the sale will be a lump sum in cash, based on the book value of Instamart’s assets and liabilities on the effective date of the transfer.
For reference, the book value as of 31 March 2025, was recorded at the same negative figure of INR (2,976.66) million.
The company stated the primary rationale for this slump sale is to develop a “focused, efficient, and strategically aligned corporate entity” for Instamart’s future development.
This restructuring is also aimed at providing “enhanced flexibility in deployment of resources”.
The transaction is classified as a related-party transaction since the buyer is an indirect step-down subsidiary of Swiggy.
The company has clarified that the deal will be conducted at “arm’s length” as the consideration is based on book value. The transfer does not form part of any scheme of arrangement.
The completion of the sale is expected after the third quarter of the 2025-26 financial year and is contingent upon receiving shareholder approval and fulfilling other customary conditions.
Importantly, the company has confirmed that there will be no change in the shareholding pattern of Swiggy Limited as a result of this transaction.
This intimation was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The disclosure was signed by Cauveri Sriram, Company Secretary and Compliance Officer for and on behalf of Swiggy Limited.
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