Company Sees Surge in Demand for 10-Minute Deliveries in Smaller Towns

Swiggy Instamart, the quick-commerce arm of Swiggy, has expanded its footprint to 100 cities across India, driven by a surge in demand for ultrafast grocery deliveries in Tier II and Tier III markets. The company made the announcement via an exchange filing on March 17, highlighting that consumers in smaller towns are embracing the convenience of 10-minute deliveries at an accelerated pace.

Key Highlights of Swiggy Instamart’s Expansion

Strong demand from smaller cities: One in four new Swiggy Instamart users in 2025 came from Tier II and Tier III locations, underscoring the shift towards quick-commerce adoption beyond metropolitan areas.
Enhanced dark store network: Swiggy is bolstering its supply chain by expanding dark stores and introducing ‘Megapods’, larger fulfillment centers designed to stock a wider range of products.
Broader product selection: Customers in these cities now have access to over 30,000 products, spanning groceries, daily essentials, electronics, smartphones, fashion, beauty, toys, and more—all delivered within 10 minutes.
Rising spending trends: The platform recorded its highest single-day order spend in Thiruvananthapuram at ₹69,993, while the highest total spent by a single customer reached ₹3.34 lakh in Dehradun.

Expanding Infrastructure: Introducing ‘Megapods’

To support its growing footprint, Swiggy Instamart is expanding its dark store network by rolling out ‘Megapods’, a next-generation warehousing solution aimed at enhancing inventory management and delivery efficiency.

Size and capacity: Each Megapod spans 10,000-12,000 square feet and can store up to 50,000 SKUs (stock-keeping units).
Greater product variety: These fulfillment centers triple the range of products available compared to standard dark stores, providing customers with a more diverse selection.
Upcoming cricket season boost: The launch of Megapods aligns with the cricket season, a time when consumer spending on quick-commerce platforms typically rises.

Consumer Trends in Tier II & Tier III Cities

Swiggy Instamart has identified key consumer spending patterns in smaller towns, revealing a shift in shopping behavior as more customers rely on instant deliveries for their daily needs.

Top-selling categories: Fruits, vegetables, snacks, dairy, bread, and eggs are the most frequently ordered items in Tier II and III cities.
Most ordered product: Onions topped the list, followed by tomatoes and coriander, reflecting the staple needs of Indian households.
City-wise ordering trends:
- Patna became the fastest city to surpass 1,000 daily orders, achieving the milestone in just four days post-launch.
- Raipur saw the highest number of launch-day orders, with 300 transactions on its debut.
- Hubli recorded the highest-value single order, with a purchase of wireless earphones worth ₹8,980 on its launch day.

CEO’s Vision: Expanding Beyond Metros

Amitesh Jha, CEO of Swiggy Instamart, emphasized that quick commerce is no longer just an urban trend, with smaller cities emerging as key drivers of growth.

“Our expansion to 100 cities strengthens our reach and allows us to better serve growing consumer needs in underserved geographies. The adoption of quick-commerce beyond metros shows that both consumer behavior and our value proposition are evolving,” Jha stated.

He further noted that the convenience-driven retail model has gained widespread acceptance across India, and Swiggy is committed to enhancing its infrastructure to meet this rising demand.

Stock Market Update: Swiggy Shares Near 52-Week Low

Despite the expansion news, Swiggy’s stock traded flat at ₹355.60 per share on March 17, reflecting broader market volatility.

The stock is currently hovering near its 52-week low of ₹317.
It remains significantly below its 52-week high of ₹617, indicating investor caution amid market uncertainties.

As Swiggy Instamart doubles down on quick-commerce in emerging cities, analysts will be closely watching whether this expansion translates into improved financial performance for the company.