Food tech platform Swiggy has expanded its grocery delivery service Instamart to five more cities in India, with a commitment to deliver essentials in 15-30 minutes, as it seeks to double down on the fast-growing quick commerce segment.
This is the first major expansion after Instamart launched in Bengaluru and Gurugram last year. Interestingly, Zomato-backed Grofers recently said it enabled 15-minute express delivery for 7,000 households in Gurugram.
The company which closed a $1.25 billion funding round, its biggest till date, in a round led by Softbank is targeting the urban convenience segment in a big way and expects it to be the next major thing in 10-15 years.
It said it will use the money to grow its core food delivery business and invest aggressively in its promising instant grocery delivery business Instamart and its pick up and drop service, Swiggy Genie.
It expects the total addressable market for convenience to grow to 500 million users in the next decade, as the Indian middle class expands and more people order food and groceries online. Swiggy said the investment will further accelerate its strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond.
Swiggy in addition to food delivery is also betting big on its hyperlocal delivery service Swiggy Genie, where it competes with Dunzo, Flipkart, Amazon, and its online grocery service Instamart, where it’s up against players such as Flipkart, Amazon, Tata-owned BigBasket, JioMart, and Grofers, which counts SoftBank and Zomato as investors.
interestingly, after Zomato’s stellar share listing, SoftBank’s Masayoshi Son believes that food delivery firm Swiggy could have a good listing if the company decides to go public at some point.
“If they (Swiggy) go public, I believe that we will be able to see good returns from here too. That’s our expectation,”SoftBank CEO Son said in an earnings presentation on August 10.
Son’s presentation also revealed that Swiggy has over 20 million monthly users, and does 1.5 million orders a day as of June this year. Its orders have grown 2.5 times, while revenue has grown 2.8 times from June 2020 to June 2021.