Swiggy, SoftBank-backed Indian food delivery startup, is set to invest $700 million in its grocery delivery service Instamart.
Instamart is set to reach an annualised gross merchandise value run rate of $1 billion in the next three quarters, Swiggy said.
The service, which spans 18 cities in the country and serves more than 1 million orders per week, will also start 15-minute deliveries in top cities by January 2022.
The Indian online grocery market is estimated to reach $18.2 billion in 2024 from $1.9 billion in 2019, according to government estimates.
Instamart competes with Tata-owned BigBasket, Grofers, Amazon.com’s Amazon Fresh and Reliance Industries’ JioMart.
Swiggy Chief Executive Officer Sriharsha Majety said the company’s food delivery business was currently at a $3 billion annualised gross merchandise value run rate.
Separately, Bloomberg News on Wednesday reported that Swiggy is nearing a $700 million fund raise led by Invesco.