Swiggy looking to invest $700M in Instamart; set to reach an annualised GMV of $1B
Bengaluru-based foodtech unicornhas stated it will be investing $700 million in its instant grocery delivery service Instamart.
Launched in August 2020 in Gurugram and Bengaluru, Instamart is present across 18 cities, and conducts over 1 million orders in a week.
“At our current growth trajectory, Instamart is set to reach an annualised 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.
Now valued at over $5.5 billion, Swiggy sees 25 percent of its overall revenues come from non-food delivery business, which includes Swiggy Genie, Instamart, and SuprDaily.
In the last few months, Swiggy Instamart has onboarded more than one seller-run dark store every day. 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.
Several sources also suggest that Swiggy is set to raise $700 million at a value of $10 billion. During the startup's $1.2 billion funding, Harsha had said,
“I believe the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users. I am confident that we will continue to achieve new growth milestones while holding the responsibility to build a vibrant ecosystem for millions of consumers, as well as our restaurant and delivery partners."
Founded in 2014, Swiggy is an on-demand delivery platform that started with food delivery. The startup connects consumers to over 1,85,000 restaurant partners and stores in over 500 cities.
Today, Instamart offers an assortment of 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.