Swiggy to invest $700 million in grocery delivery vertical Instamart
The company said by January 2022, it will make deliveries in 15 minutes by having the network of dark stores very close to the majority of its customers.
Food ordering and delivery platform, Swiggy Thursday announced that the company will invest $700 million in its express grocery delivery service Instamart.
Launched in Gurugram and Bengaluru in 2020, Swiggy said Instamart is now serving customers across 18 cities and doing over 1 million orders per week. The company said by January 2022, it will make deliveries in 15 minutes by having the network of dark stores very close to the majority of its customers.
"At our current growth trajectory, Instamart is set to reach an annualised gross merchandise value (GMV) run rate of $1 billion in the next three quarters. With our food delivery business trending at a $3 billion annualised GMV run rate, and Instamart's super-charged growth, we’re very excited about our convenience mission coming to life in a very big way," said Sriharsha Majety, CEO, Swiggy.
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The platform offers products across categories like fresh fruits and vegetables, daily bread and eggs, cooking essentials, beverages, instant food and munchies, personal and baby care, home and cleaning, specially curated to suit the demand requirements of each location. It is available in Ahmedabad, Bengaluru, Chennai, Coimbatore, Chandigarh, Delhi, Gurugram, Hyderabad, Indore, Jaipur, Kolkata, Kochi, Lucknow, Ludhiana, Mumbai, Noida, Pune and Vizag.
According to a Redseer report, there are nearly 20 million households addressable by quick commerce in India, and quick commerce is expected to grow at 10-15x to reach a market size of $5 billion by 2025.
Top-ups and unplanned purchases account for two-thirds of India's consumables spending, as per the report. In metros and Tier 1 cities, 70 percent of the purchases are unplanned and top-ups. There are multiple well-funded players in the space. Grofers recently turned unicorn with a $120 mullion fundraise led by Zomato.
Zepto, founded in 2020 by two 19-year-old Standford dropouts, raised $60 million from the likes of Glade Brook Capital, Nexus, and Y Combinator. Swiggy closed a $1.25 billion fundraising in July this year led by SoftBank Vision Fund 2 and long-term investor Prosus, and the company had said the funding would accelerate both food and non-food businesses. Dunzo raised $40 million in January from investors including Google and Lightbox. Ride-hailing platform Ola has also entered the grocery delivery service.
(Edited by : Jomy Jos Pullokaran)
First Published: Dec 2, 2021 3:39 PM IST
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