DMart approves up to ₹500 crore investment in online grocery arm
Avenue Supermarts will invest up to ₹500 crore in Avenue E-Commerce as DMart Ready focuses on 11 key cities. The online business reported FY26 revenue of ₹4,094 crore, up 17%, while losses widened to ₹307 crore.
What happened
DMart parent Avenue Supermarts approved up to ₹500 crore for online grocery arm Avenue E-Commerce. DMart Ready’s FY26 revenue grew 17% to ₹4,094 crore, while
Key facts
- Up to ₹500 crore fresh investment in Avenue E-Commerce
- Total capital investment could reach nearly ₹2,000 crore
- ₹350 crore invested during FY26
- FY26 revenue rose 17% to ₹4,094 crore from ₹3,502 crore in FY25
- FY26 loss widened to ₹307 crore from ₹247 crore in FY25
- Service footprint expanded to 18 cities
- Eight fulfilment centres added
- DMart Ready is concentrating on 11 key cities
Why this matters
DMart’s decision to fund Avenue E-Commerce internally reinforces online grocery as a strategic omnichannel capability, potentially limiting near-term appetite for external partnerships or acquisitions.
What to watch
- Quarterly Avenue E-Commerce revenue growth relative to the reported 17% FY26 pace.
- Loss trajectory, cash burn and any additional equity infusion beyond the approved ₹500 crore.
- Expansion or contraction in the number of serviced cities, dark stores and delivery catchments.
- Average order value, repeat purchase rates, delivery fees and fulfillment-cost indicators.
- Management commentary on contribution-margin or EBITDA breakeven timelines.
- Price and delivery-time responses from quick-commerce and large e-grocery competitors in DMart Ready's 11 markets.
- Evidence of online-led sales cannibalization versus incremental customer acquisition for the DMart ecosystem.
- Concentrate new dark stores, fulfillment infrastructure and delivery capacity in the 11 identified cities rather than pursue rapid national rollout.
- Use DMart store sourcing, private labels and supplier terms to sharpen value baskets and protect gross margin online.
- Increase integration between physical DMart stores and DMart Ready through shared inventory intelligence, customer data and localized assortment planning.
- Prioritize higher-frequency categories, subscription-like repeat purchase behavior and larger basket sizes to improve delivery economics.
- Invest selectively in app reliability, slot availability and personalized promotions instead of matching sub-10-minute quick-commerce delivery across all categories.
- Evaluate whether online growth cannibalizes nearby store sales or expands household wallet share and catchment reach.