Swiggy CEO Rules Out Spending War
Swiggy CEO Sriharsha Majety has said the company will avoid joining a costly spending battle in India’s quick-commerce market, choosing instead to focus on profitability, customer loyalty and long-term business discipline.
Swiggy Focuses On Profitability
Majety said Swiggy does not plan to match rivals incentive-for-incentive as major players such as Flipkart, Amazon and Reliance Retail compete aggressively on delivery speed, discounts and market share.
Swiggy’s quick-commerce arm Instamart operates more than 1,100 small warehouses across Indian cities, supporting rapid delivery of groceries, electronics and household items. However, the company added only seven stores in the March quarter, signalling a more cautious expansion strategy.
Instamart Growth Strategy Changes
Majety said joining a short-term spending battle would only delay the challenge of building a profitable business. He said Swiggy is willing to lose some low-value users in the short term while retaining loyal and more profitable customers.
The company is also looking at differentiation through private-label grocery products and harder-to-source fresh items. Majety said such products can improve repeat purchases and customer retention instead of relying only on discounts.
Quick Commerce Competition Intensifies
India’s quick-commerce market has become one of the most competitive consumer-tech sectors, with companies racing to deliver goods in minutes. Investors have poured large sums into the sector, but profitability remains a major concern.
Swiggy’s shares have fallen more than 30% this year, increasing pressure on the company to show a clearer path to profitability. Majety said Instamart has improved unit economics over the past four quarters and rejected the idea that capital would be the reason if Swiggy fails.
