Softbank-backed startup Swiggy announced Thursday it will invest $700 million in grocery delivery service Instamart to strengthen its base in the highly competitive domestic market.
Instagram first launched in Bengaluru and Gurgaon last year and will have a total annual performance of $1 billion over the next three quarters, Suigi said.
The service, which covers 18 cities across the country, processes more than 1 million orders per week and will start with 15-minute deliveries to the best cities from January 2022.
Indian courier companies have been hit by a sudden blockade due to the pandemic last year as they prevent people from ordering for health reasons.
The government estimates the online wholesale market will grow from $1.9 billion in 2019 to $18.2 billion in 2024.
Instamart competes with Big Basket Grofers, which is owned by Tata, and big competitor Swiggy Zomato Ltd has invested in Jio Mart from Amazon Fresh and Reliance Industries Inc. from Amazon.com.
Swiggy CEO Sriharsha Majeti said in a statement that the company’s grocery stores are currently worth $3 billion a year.
Separately, Bloomberg News reported Wednesday that Swiggy is close to $700 million in Invesco-led funding.