Indian quick commerce companies like Swiggy, Zepto, and Flipkart pull back on adding dark stores to control their cash burn, after a rapid year of expansion
💸💸India's quick commerce players are slowing down dark store expansion to rein in cash burn after an aggressive year of growth. Industry executives say companies are now renegotiating leases for these hyperlocal warehouses as they shift focus from land grab to profitability.
📌The lone outlier is Blinkit. Backed by Zomato-parent Eternal's $2 billion war chest, it is doubling down and aims to nearly double its footprint to 3,000 stores from 1,544 as of June 30. By contrast, Swiggy and Zepto, are tightening the purse strings.
🔷Swiggy Instamart opened just 42 new dark stores in the April-June quarter, taking its total network to 1,062. 🔷Zepto has effectively paused expansion after crossing 1,000 stores. 🔷Flipkart Minutes is also treading cautiously, adding new locations selectively. [image]