Q-commerce raises dark-store capex to ₹2.5 crore: Report
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Quick commerce is entering a more capital-intensive phase as platforms expand store sizes, deepen assortments and build infrastructure to handle higher order volumes. A UBS report indicates that Blinkit and Swiggy Instamart have raised their capex guidance per dark store to around ₹2.5 crore, from about ₹1 crore estimated nearly two years ago. The increase reflects a structural change in the design of quick-commerce networks. While dark stores were earlier typically in the 2,000-3,000 sq ft range, newer facilities are increasingly exceeding 5,000 sq ft. UBS estimates that dark-store sizes have risen by 60-100% over the past one to two years. The cost varies materially with the size of the facility. A 2,500-3,000 sq ft store currently costs around ₹1.4-1.6 crore, while a 5,000 sq ft facility costs approximately ₹2.4-2.5 crore. A 7,000 sq ft facility can cost around ₹3 crore, including the apportioned cost of warehouse infrastructure. The larger footprint is also changing inventory economics. Bigger facilities can carry more reserve inventory and long-tail SKUs locally, reducing the frequency of replenishment. UBS estimates that the warehouse area multiple could decline from 1.0x for a 2,500-3,000 sq ft store to 0.8x for a 5,000 sq ft store and 0.6x for a 7,000 sq ft facility. The report also describes a shift in the function of these locations - from neighbourhood inventory...
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