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Swiggy Instamart Aims to Boost Sales per Order!

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Swiggy Instamart Aims to Boost Sales per Order!

Swiggy’s quick-commerce service, Instamart, is actively working to increase the average amount customers spend per order. While the service has seen a rapid growth, its average order value (AOV) of ₹499 is lower than some competitors, prompting the company to implement several strategies to enhance profitability.

Strategies to Boost Sales per Order

More Products

Instamart is expanding its product range by adding a wider variety of items, including non-food products. This diversification aims to encourage customers to purchase more items per order, thereby increasing the overall AOV.

Bigger Warehouses

To support this expansion, Swiggy is investing in larger warehouses that can stock a more extensive inventory. By increasing storage capacity, Instamart can offer a broader selection of products, making it more convenient for customers to find everything they need in one place.

Targeted Marketing

Instamart is employing targeted marketing strategies to attract customers who are likely to spend more. By analyzing customer data and purchasing behavior, Swiggy can tailor promotions and advertisements to encourage higher spending per transaction.

Why It Matters

Increasing the average order value is crucial for Instamart’s profitability. By encouraging customers to spend more per order, the company can reduce its costs and improve its bottom line. A higher AOV can lead to better margins and help offset operational expenses associated with quick delivery services.

Competitive Landscape

However, achieving this goal won’t be easy. The quick-commerce market is highly competitive, with other companies like Blinkit, Zepto, and BigBasket also vying for customers. Instamart will need to continue innovating and finding new ways to attract and retain customers amidst this fierce competition.

Financial Performance and Market Position

In recent financial reports, Swiggy noted that Instamart generated ₹3,221.4 crore in FY23, reflecting a 39.7% increase from the previous fiscal year. The average order value has risen by 20% to around ₹460, indicating that efforts to enhance customer retention and basket sizes are beginning to yield results.

Delivery Fee Adjustments

As part of its strategy to boost profitability, Swiggy may also consider increasing delivery fees for Instamart orders. According to Chief Financial Officer Rahul Bothra, the company plans to gradually raise these charges while ensuring that they remain competitive compared to other players in the market.

Conclusion

Swiggy Instamart is focusing on increasing sales per order through product diversification and improved warehousing. This strategic approach aims to enhance profitability and strengthen its position in the competitive quick-commerce market. By understanding and catering to evolving consumer preferences, Instamart is well-positioned to drive sustainable growth in the future.

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Zoho Pay Debuts as India’s New UPI Challenger, Taking on PhonePe, Paytm, and Google Pay

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Zoho Payment

Zoho Corporation has expanded its fintech portfolio with the launch of Zoho Pay, a UPI-based payments app built to challenge India’s top digital payment giants such as PhonePe, Paytm, and Google Pay. The new app supports peer-to-peer transfers, bill payments, QR-based transactions, and merchant settlements in a streamlined interface. Available as both a standalone app and an integrated feature inside Zoho’s privacy-driven messenger Arattai, Zoho Pay enables users to handle chats and payments in one platform, emphasizing data privacy and Made-in-India innovation.​

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In the competitive digital payments market, Zoho Pay differentiates itself through its tight business software integration with apps like Zoho Books, Zoho Payroll, and Zoho Commerce, offering small businesses unified access to payments, billing, and accounting. The company is also expanding its reach with POS devices for merchants featuring UPI QR, card payments, and instant reconciliation tools. With founder Sridhar Vembu’s vision of a ‘Chat + Pay’ ecosystem, Zoho Pay reflects a bold step toward redefining India’s fintech scene with a secure, ad-free, and locally developed alternative to global payment platforms.

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Meta Expands AI-Powered Reels Translation to Hindi and Portuguese, Enhancing Global Creator Reach

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Dunzo’s Collapse: Reliance’s ₹1,645 Crore Loss Signals Challenges in India’s Hyperlocal Delivery Market

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Startup Stories

Reliance Industries has officially written off its $200 million investment in Dunzo, a once promising quick-commerce startup in India. Despite high-profile backing and the potential to disrupt the hyperlocal delivery sector, Dunzo faced insurmountable challenges including high operational costs, unsustainable cash burn, and stiff competition from larger players like Zepto and Blinkit. Reliance’s decision follows Dunzo’s operational suspension, leadership exits, and failed attempts at securing additional funding or acquisition partners, ultimately resulting in the company’s digital platforms going offline in early 2025.​

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