India’s Swiggy to invest $700 mln in grocery delivery service Instamart

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BENGALURU, Dec 2 (Businesshala) – SoftBank-backed (9984.T) Indian food delivery startup Swiggy on Thursday said it will invest $700 million in its grocery delivery service Instamart to gain a foothold in the highly competitive domestic market.

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Swiggy said that first launched in the Indian cities of Bengaluru and Gurugram last year, Instamart is set to reach an annual gross merchandise value run rate of $1 billion over the next three quarters.

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The service, which is spread across 18 cities in the country and serves over 1 million orders per week, will also start 15-minute deliveries in top cities by January 2022.

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Home delivery companies in India were hit by a sudden pandemic-related lockdown last year as health concerns discouraged people from ordering, but as initial hesitation eased, food and grocery delivery apps like Swiggy have allowed fewer people to order. took advantage of the exit.

According to government estimates, the Indian online grocery market is projected to reach $18.2 billion in 2024 from $1.9 billion in 2019.

Instamart competes with Tata-owned BigBasket, Grofers, which has stakes in Swiggy’s larger rival Zomato Ltd (ZOMT.NS), Amazon.com Inc (AMZN.O) Amazon Fresh and Reliance Industries’ (RELI.NS). JioMart.

Swiggy’s chief executive officer Sriharsha Majeti said in a statement that the company’s food delivery business was currently at a $3 billion annual gross merchandise value run rate.

Separately, Businesshala News on Wednesday informed of That Swiggy is close to raising a $700 million fund led by Invesco.

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Reporting by Rama Venkat in Bengaluru; Editing by Devika Shyamnath

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