DMart parent Avenue Supermarts approves Rs 500 crore investment in online grocery arm

Mumbai: Avenue Supermarts, the parent of supermarket chain DMart, has approved a fresh investment of up to ₹500 crore in its online grocery subsidiary Avenue E-Commerce as it continues to invest in DMart Ready despite widening losses.

The investment, approved at the company's Annual General Meeting on Wednesday, could take the total capital invested in AEL to nearly ₹2,000 crore, including ₹350 crore invested during FY26.

Avenue E-Commerce, which operates DMart Ready, reported a 17% increase in revenue to ₹4,094 crore in FY26 from ₹3,502 crore a year earlier. However, its loss widened to ₹307 crore from ₹247 crore in FY25.


Over the last fiscal year, the company strengthened its home-delivery business during the year and expanded its service footprint to 18 cities, while adding eight fulfilment centres and investing in technology, customer interfaces and delivery capabilities, according to the company's latest annual report.

The company has, however, sharply narrowed its focus for DMart Ready, concentrating on 11 cities where most of its online business comes from.

"We made a conscious choice to double down on DMart Ready in 11 key cities where the vast majority of our online business comes from. We want our team to be laser-focused on proving that we can run a truly sustainable, profitable e-commerce model here," managing director and CEO Anshul Asawa told investors.