Samreen Ahmad · · 1 min readSwiggy to pour $700m into quick commerce arm
Swiggy, an India-based food delivery unicorn, will invest US$700 million in its express grocery delivery service Instamart.
Photo credit: Swiggy
Rolled out last year, Swiggy Instamart currently serves customers across 18 cities. The SoftBank-backed company also said that the service is doing over 1 million orders per week.
In the last few months, Swiggy Instamart has onboarded more than one seller-run dark store each day, the company said. The service is set to reach an annualized gross merchandise value (GMV) run rate of US$1 billion in the next three quarters.
“With our food delivery business trending at a US$3 billion annualized 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 of Swiggy, in a statement.
According to a RedSeer report, India’s quick commerce industry is slated to become a US$5 billion market by 2025.
Tiger Global-backed Zomato is also reportedly in talks to invest US$500 million in Grofers to step up its quick commerce play.
Editing by Collin Furtado and Lorenzo Kyle Subido
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