Swiggy Board Approves Transfer of Instamart to Wholly Owned Subsidiary

Swiggy Limited announced that it will hive off its Instamart business into a separate entity. The board approved the slump sale on September 23, 2025, transferring all assets, liabilities, licenses, employees, and related contracts of Instamart to Swiggy Instamart Private Limited, a step-down wholly owned subsidiary.

Transaction Structure

The transfer will be executed as a going concern through a Business Transfer Agreement (BTA). Shareholder approval will be sought before final execution. Completion is expected after the third quarter of FY 2025–26, subject to closing conditions.

Swiggy will receive a lump-sum cash consideration based on the book value of Instamart’s assets and liabilities on the effective transfer date. As per FY 2024–25 financials, Instamart generated revenue of ₹21,295.84 million, accounting for 24.21% of Swiggy’s standalone revenue. However, its net worth stood at ₹(2,976.66) million as of March 31, 2025.

Related-Party Nature

The transaction qualifies as a related-party deal, as the buyer is Swiggy Instamart Pvt Ltd, an indirect step-down subsidiary of the company. The sale will be executed at arm’s length, with valuation based on audited book values. Importantly, this restructuring will not alter Swiggy Limited’s overall shareholding pattern.

Strategic Rationale

According to Swiggy, moving Instamart into a dedicated subsidiary will allow sharper operational focus, strategic flexibility, and improved efficiency in scaling the business. The new structure is expected to help Instamart pursue long-term growth independently while still remaining under Swiggy’s umbrella.

Read More: Swiggy Increases Platform Fee to ₹15, Marking the Third Hike in 3 Weeks!

Conclusion

Swiggy’s decision to carve out Instamart through a slump sale marks an important restructuring step. By creating a focused subsidiary for its quick-commerce arm, the company aims to enhance flexibility and performance while maintaining overall group synergies.

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