Table of Contents
Swiggy’s Instamart network has seen a steady increase in average dark store area — from 2,904 sq. ft. in Q4 FY24 to 3,889 sq. ft. in Q4 FY25, marking a growth of nearly 34% YoY.
This signals a strategic transition from smaller, hyperlocal nodes toward larger-format, high-throughput fulfillment centers that can handle broader assortments and improve inventory utilization.
The move comes as quick commerce players scale beyond instant delivery to include higher-margin categories like packaged food, personal care, and home essentials - all of which demand additional space and storage optimization.
What It Means
Swiggy’s expansion in average dark store size indicates:
- Operational consolidation: Fewer but larger dark stores suggest better economies of scale and cost efficiency.
- Assortment depth: Larger footprints allow Swiggy to increase SKUs and offer greater product variety — key to defending share against Blinkit and Zepto.
- Demand densification: Growth in high-frequency Tier-I catchments supports scaling store size without hurting delivery times.
Overall, the data points to a mature phase of network optimization, where efficiency and assortment are prioritized over sheer store count.
