Food delivery app Swiggy earmarks $700 million for Instamart
- ByTejika Bajaj | December 3, 2021
The renowned food delivery app Swiggy recently involved an infusion of $700 million in its quick delivery segment Instamart amidst growing competition in the grocery delivery segment and heightened interest of investors. Launched in August 2020, Instamart is set to clock an annualised GMV run rate of $1 billion in the next three quarters.
The infusion of capital comes at the back of the Bengaluru based company holding talks to close a $600-700 million deal with US-based asset manager Invesco. The fundraising is likely to ascribe the firm a valuation of over $10 billion and is a part of a re-rating exercise that will double the company’s valuation post its rival Zomato’s IPO.
Talking about the recent infusion of funds in the quick delivery segment, the co-founder and CEO of Swiggy, Sriharsha Majety said, “It is not a dated commitment where we are going to deploy this in the next 12 months or 18 months. We think that is the size of ammunition that we need to deploy to be able to do justice to this category. It is an exciting category and our commitment to invest is also a function of that. Every time there is a new category that is starting to explode or open up—whether globally or locally— there’s always going to be interest and there will be some funding happening along the way.”
A result of the leanings of Swiggy stores, Instamart was conceived last year as a quick grocery delivery segment which works through a network of seller-owned dark stores. What has morphed into Instamart began as an experiment and has now reached the status of the second highest revenue driver for food delivery platforms.
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