BENGALURU: Swiggy is set to launch larger dark stores as part of its quick commerce expansion strategy. The company is planning to set up dark stores of 8,000-10,000 square feet capacity, capable of storing 30,000 to 35,000 SKUs, offering customers broader product access across different areas.
Currently, Swiggy operates dark stores between 2,800 to 4,500 sft. These facilities traditionally occupy 2,500-3,000 sft, serving as compact warehouses designed for swift commerce operations and efficient local delivery services.
In comparison, quick commerce platform Zepto's dark stores measure 3,000 sft, with recent expansions to 4,500 sft in new locations. Zomato-owned Blinkit runs 2,000-3,000 sft facilities but has begun testing larger 7,000 to 8,000 sft spaces.
"Consumers are not looking for the cheapest alternative when they come to shop on quick commerce platforms. They are looking at assortment and speed. Speed is not a differentiator anymore. What is important is the assortment and more importantly the availability of the assortment at the hyperlocal store. If the store size is limited, there are only so many units you can place on every item, so we are going to experiment with the format to increase selection without hampering customer experience," Swiggy CFO Rahul Bothra said.
The expanded dark stores will accommodate additional products, including slower-moving consumer goods and electronics, with delivery times potentially extending to 20 minutes instead of 10, according to Bothra. The organisation is presently testing these facilities in Bengaluru.
The Bengaluru-based platform, founded in 2014, has set its Rs 11,300 crore IPO price between Rs 371 and Rs 390 per share, including a fresh equity shares issue worth up to Rs 4,499 crore.
The pricing values Swiggy at up to $11.3 billion, up from its $10.7 billion valuation in its 2022 funding round. Its listed rival Zomato currently maintains a market capitalisation of $25.6 billion.
Currently, Swiggy operates dark stores between 2,800 to 4,500 sft. These facilities traditionally occupy 2,500-3,000 sft, serving as compact warehouses designed for swift commerce operations and efficient local delivery services.
In comparison, quick commerce platform Zepto's dark stores measure 3,000 sft, with recent expansions to 4,500 sft in new locations. Zomato-owned Blinkit runs 2,000-3,000 sft facilities but has begun testing larger 7,000 to 8,000 sft spaces.
"Consumers are not looking for the cheapest alternative when they come to shop on quick commerce platforms. They are looking at assortment and speed. Speed is not a differentiator anymore. What is important is the assortment and more importantly the availability of the assortment at the hyperlocal store. If the store size is limited, there are only so many units you can place on every item, so we are going to experiment with the format to increase selection without hampering customer experience," Swiggy CFO Rahul Bothra said.
The expanded dark stores will accommodate additional products, including slower-moving consumer goods and electronics, with delivery times potentially extending to 20 minutes instead of 10, according to Bothra. The organisation is presently testing these facilities in Bengaluru.
The Bengaluru-based platform, founded in 2014, has set its Rs 11,300 crore IPO price between Rs 371 and Rs 390 per share, including a fresh equity shares issue worth up to Rs 4,499 crore.
The pricing values Swiggy at up to $11.3 billion, up from its $10.7 billion valuation in its 2022 funding round. Its listed rival Zomato currently maintains a market capitalisation of $25.6 billion.
