DMart approves up to ₹500 crore for DMart Ready operator Avenue E-Commerce
Avenue Supermarts has approved a fresh investment of up to ₹500 crore in Avenue E-Commerce. The online grocery business posted FY26 revenue of ₹4,094 crore, up 17%, while losses widened to ₹307 crore as it expanded to 18 cities and added eight fulfilment centres.
What happened
Avenue Supermarts approved up to Rs 500 crore for DMart Ready operator Avenue E-Commerce, despite widening FY26 losses. The online grocery unit expanded
Key facts
- Up to Rs 500 crore fresh investment in Avenue E-Commerce
- Nearly Rs 2,000 crore total potential capital invested in AEL
- Rs 350 crore invested during FY26
- FY26 revenue Rs 4,094 crore, up 17% from Rs 3,502 crore in FY25
- FY26 loss Rs 307 crore versus Rs 247 crore in FY25
- Service footprint expanded to 18 cities
- Eight fulfilment centres added
- DMart Ready focus narrowed to 11 key cities
Why this matters
DMart is choosing internal investment over external acquisition to build omnichannel capability, using a concentrated-city model to improve the strategic economics of its online grocery network.
What to watch
- Quarterly revenue growth versus loss growth at Avenue E-Commerce, especially whether losses begin growing slower than sales.
- Revenue per fulfilment centre, order density and evidence of improving contribution margin in the 11 priority cities.
- Any pause in expansion beyond 18 cities or closure/consolidation of low-density service areas.
- Changes in delivery fees, minimum-order thresholds, promised delivery times or promotional intensity.
- Growth in private-label share and average basket value on DMart Ready.
- Competitive response from Blinkit, Zepto, Swiggy Instamart, BigBasket and JioMart in DMart’s strongest urban markets.
- Parent-company commentary on capital-allocation limits, breakeven targets and whether further funding is required.
- Prioritize assortment depth, delivery-slot availability and repeat purchasing in the 11 core cities rather than broadening city coverage rapidly.
- Use new fulfilment centres to create denser local delivery radii and lower last-mile cost per order.
- Tighten customer-acquisition spending, shifting toward DMart-linked loyalty, targeted reactivation and higher-basket replenishment missions.
- Expand private-label and high-margin packaged-grocery mix online to improve gross margin without abandoning DMart’s value positioning.
- Test selective faster-delivery propositions in dense neighbourhoods, while avoiding a full subsidy-led quick-commerce model.
- Integrate store, warehouse and online inventory more tightly to reduce stock-outs and working-capital duplication.