Bengaluru, Feb. 5 -- Growth investments being made into Swiggy's quick commerce arm Instamart will mature over time as the firm works on reducing delivery costs and increasing advertising revenue, according to chief financial officer Rahul Bothra.

The firm's average order value in the October-December quarter was Rs.534, up 14% year-on-year, while the cost of fulfilling a delivery is now the lowest it has ever been, Bothra told Mint in an interview on Wednesday. Swiggy's advertising revenue surged 65% to Rs.751 crore in the December quarter.

"These structural levers, as well as the maturity of these newly opened stores, will help us to get to the contribution margin break-even by the third quarter of FY26," Bothra said.

Swiggy's losses...