BENGALURU: Food ordering and delivery platform Swiggy will invest $700 million in its express grocery delivery service Instamart.
Swiggy Instamart has onboarded more than one seller-run dark store every day in the last few months.
By January 2022, it is planning to make deliveries in 15 minutes by having the network of dark stores very close to the majority of its customers.
Launched in Gurugram and Bengaluru in 2020, Swiggy Instamart is serving customers across 18 cities, and doing over 1 million orders per week. According to a Redseer report, quick commerce is estimated at $ 0.3 billion in CY2021, and is expected to grow 10-15x in the next 5 years, to become $5 billion by 2025.
The report added that over 20 million households are addressable by quick commerce in India with estimated addressable market size of $50 billion in 2020. Mid to high-income househholds, Metro and Tier 1 cities are major growth driver of quick commerce.
“At our current growth trajectory, Instamart is set to reach an annualised GMV run rate of $1 billion in the next three quarters. Our food delivery business is trending at a $3 billion annualised GMV run rate,” said Sriharsha Majety, CEO, Swiggy.
Instamart competes wth Zomato-backed Grofers, which focuses on 10 minutes delivery, and Dunzo, which recently launched 19-minute delivery in Bengaluru.
Ride-hailing platform Ola too started piloting quick delivery services for groceries.
The platform offers products across categories like fresh fruits and vegetables, daily bread and eggs, cooking essentials, beverages, instant food and munchies.
Aims for 15-minute delivery by Jan 2022
Swiggy Instamart has onboarded more than one seller-run dark store every day in the last few months.
By January 2022, it is planning to make deliveries in 15 minutes by having the network of dark stores close to its customers.