Now Reading: DMart parent approves Rs 500 crore investment in online arm
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DMart parent approves Rs 500 crore investment in online arm
Avenue Supermarts, the parent company of DMart, has approved a fresh investment of up to ₹500 crore in its online grocery subsidiary Avenue E-Commerce. The decision, taken at the company's Annual General…
Avenue Supermarts, the parent company of DMart, has approved a fresh investment of up to ₹500 crore in its online grocery subsidiary Avenue E-Commerce. The decision, taken at the company's Annual General Meeting on Wednesday, could push the total capital invested in the unit to nearly ₹2,000 crore, including ₹350 crore infused during FY26.
Avenue E-Commerce, which operates DMart Ready, reported a 17% rise in revenue to ₹4,094 crore in FY26, up from ₹3,502 crore a year earlier. However, its net loss widened to ₹307 crore from ₹247 crore in FY25.
The company has narrowed its focus to 11 cities that generate most of its online sales. Managing director Anshul Asawa said the goal is to prove that DMart Ready can run a sustainable, profitable e-commerce model in these key markets before expanding further.
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The decision comes as DMart faces intense competition from quick-commerce players such as Blinkit, Zepto and Swiggy Instamart, which have eroded its market share in the online grocery segment. At stake is not just ₹500 crore but the viability of a traditional retailer's offline-first model against the ultra-fast delivery startups that have captured urban Indian consumers. Avenue Supermarts, which commands a market capitalisation of over ₹3 lakh crore, is effectively betting that it can achieve profitability in 11 key cities before scaling further. The ₹2,000-crore cumulative investment means the company needs to demonstrate a clear path to break-even. Shareholders will watch closely when the subsidiary reports its next quarterly results for any narrowing of losses.
Source: retail.economictimes.indiatimes.com
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