Swiggy Ltd has announced that its board has approved the sale and transfer of its quick-commerce business, Instamart, to an indirect step-down wholly-owned subsidiary, Swiggy Instamart Pvt Ltd, through a slump sale.
Key Details of the Transaction
- The transaction covers Instamart’s assets, liabilities, employees, intellectual property, and contracts, and will be executed as a going concern.
- Shareholder approval is required to complete the deal.
- Revenue from Instamart contributed 24.2% of Swiggy’s standalone revenue in FY25, while its net worth was negative 2.48% as of March 31, 2025.
- Swiggy will receive a lump-sum cash consideration based on the book value of assets and liabilities on the effective date, expected after Q3 FY26.
Strategic Rationale
Swiggy stated that the transfer aims to:
- Create a focused and strategically aligned entity for Instamart
- Enhance operational efficiency and resource deployment flexibility
- Support long-term growth and performance of the Instamart business
The company confirmed that there will be no change in the shareholding pattern following the transaction.
Summary
Swiggy Ltd has approved the slump sale of its Instamart unit to a wholly-owned subsidiary, Swiggy Instamart Pvt Ltd, with assets, liabilities, and employees included in the transaction. The move aims to create a focused, efficient entity for long-term growth, with a lump-sum consideration based on book value expected after Q3 FY26, and no change to Swiggy’s shareholding structure.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.