Swiggy is aggressively scaling its in-house consumer brand, Noice, transforming it from a niche offering into a major standalone label within the competitive quick commerce landscape. Launched on its Instamart platform, Noice has seen explosive growth, expanding its product range and manufacturing base at a remarkable pace since August last year.
Rapid Expansion and Strategic Hiring
According to sources familiar with the company's operations, Noice has grown from approximately 200 stock-keeping units (SKUs) to about 350. Simultaneously, its network of contract manufacturers has surged from around 40 to nearly 70. This expansion marks a significant shift from its origins as a premium, small-batch brand focused on Indian snacks, sweets, and baked goods.
The brand has now moved decisively into new categories. Recent additions include beverages, ready-to-cook items, dairy, and fresh products like eggs, dosa batter, and paneer. This wide-ranging expansion into perishables and staples signals a bold strategic move beyond the typical private-label playbook.
To fuel this ambition, Swiggy is bringing in top-tier talent. Royan Mody, former director for private labels at Flipkart, is now leading Noice at Swiggy Instamart. Furthermore, the company has hired Mayur Hola, ex-OYO global brand head, as Vice-President of Brand, with a mandate covering Swiggy's various businesses, including Instamart. These hires underscore Swiggy's intent to build Noice as a formidable consumer brand in its own right, not just a platform-specific label.
The High-Stakes Margin Game
This aggressive push is fundamentally driven by the challenging economics of quick commerce. Despite scaling up, platforms like Swiggy Instamart, Blinkit, and Zepto continue to report significant losses as they compete for market share.
Swiggy Instamart's adjusted revenue jumped to ₹1,038 crore in the July-September quarter from ₹513 crore a year earlier. However, its adjusted Ebitda loss also widened sharply to ₹849 crore from ₹359 crore over the same period. Private labels like Noice offer a critical lever to improve unit economics.
Industry experts highlight the stark margin difference. While platforms earn 10-15% net margins on third-party brands, private labels can deliver gross margins of 35-40%, even after sharing a portion with manufacturers. Pradyumna Nag of Prequate Advisory notes that Noice resembles Amazon's Solimo strategy, using platform data to guide product selection in high-demand categories.
Industry estimates suggest private labels now account for 20-25% of sales in staples and everyday groceries across major quick-commerce platforms. Swiggy's deep dive into packaged foods and staples with Noice is a clear attempt to differentiate Instamart and bolster its financials.
Consumer Pushback and Partner Friction
However, this strategy is not without significant risks. Quick commerce apps have become vital discovery and sales channels for both new-age D2C brands and established FMCG giants. Prioritizing in-house labels can create friction with these crucial brand partners.
An investor in the consumer space pointed out that while quick commerce might contribute only 2-3% of sales for a large brand, this translates to a massive ₹200-300 crore annually for a ₹10,000 crore company. Losing this channel is a serious threat.
More importantly, consumers may resist the push. A product manager at a rival platform shared that attempts to prominently feature their own private labels in staples like rice and atta led to higher drop-offs at checkout. Shoppers coming for trusted brands like Aashirvaad abandoned their carts when faced with platform-owned alternatives, forcing a rethink of the search-ranking strategy.
Nag also flagged the inherent power imbalance. While large incumbents like Britannia can threaten to leave a platform, smaller D2C brands have less leverage. When consumers search for generic terms like 'chips,' platforms control discovery, potentially giving their own labels prime placement and creating a 'chokehold' dynamic over smaller partners.
Swiggy's Noice expansion represents a bold bet on the future of quick commerce profitability. By rapidly scaling its private label across categories and hiring seasoned brand builders, Swiggy is signaling its ambition to create a significant standalone business. However, the path is fraught with challenges, including potential backlash from consumers accustomed to trusted brands and strategic friction with the very partners that populate its platform. The success of Noice will be a key indicator of whether private labels can truly transform the economics of instant delivery in India.
