Exclusive: After Dunzo, Swiggy takes on Dailyninja, Milkbasket and BB via SuprDaily expansion

Bengaluru, Hyderabad, and Pune are turning out to be battlegrounds for micro-delivery startups. Within weeks of Milkbasket debut in Karnataka's state capital, Swiggy-owned Suprdaily has kicked off operations in Bengaluru and three new cities - Pune, Hyderabad, and Pimpri Chinchwad.

According to its app, the Mumbai-based firm has been delivering milk, vegetables/fruits, breakfast essentials (bread, butter, and eggs) as well as staples every morning at subscribers’ doorstep in multiple locations in the aforementioned cities.

Swiggy had acquired Suprdaily last year in cash plus stock deal. Entrackr was first to report about the acquisition in June last year.

For Bengaluru, the company has partnered with milk suppliers Nandini, Thirumala and Akshayakalpa, while Heritage and Vijaya are prominent partners in Hyderabad. Chitale, Amul and Katraj Dudh are supplying milk to Suprdaily in Pune.

Entrackr has sent a detailed questionnaire to Swiggy's spokesperson. We'll update the post as the response comes in.

“The expansion of Suprdaily has been mandated by founders and senior management team of Swiggy as it wants to test the market for microdelivery across top 10 cities in India,” said two sources aware with the discussion. They requested anonymity as the discussion is private.

Sources also indicate that if SuprDaily demonstrates decent scale and consistent demand then Swiggy would integrate into its native app. Surprisingly, the Naspers-backed firm is yet to announce SuprDaily’s acquisition and give any brand association to SuprDaily.

“As per the internal plan, SuprDaily is likely to launch in NCR region soon. Swiggy has allocated $10 million for SuprDaily for expansion,” added the aforementioned sources.

Swiggy is pushing SuprDaily for expansion as the firm eyes scale through the addition of new verticals besides core business - food delivery.

After raising $1 billion at a staggering $3.3 billion valuation, the Bengaluru-based firm launched Swiggy Store to deliver virtually everything at customer doorstep. The new service puts Swiggy in direct competition with Google-backed dunzo and BigBasket.

With the aggressive push to portfolio company SuprDaily, Swiggy intends to outlast Dailyninja, Milkbasket and BigBasket's BB Daily. Dailyninja operates in Bengaluru, Hyderabad, Pune, and Mumbai while Milkbasket had recently begun operations in Bengaluru.

Meanwhile, Alibaba-backed BigBasket has been ramping up its play in micro-delivery service - BB Daily at a quick pace. At present, it's operational in 10 cities. The firm had acquired Pune-based RainCan and MorningCart before announcing BB Daily.

Entrackr had exclusively reported both acquisitions last year.

Given that, after Bigbasket, Swiggy has also laid out a long term plan to win the micro-delivery segment, incumbents like Dailyninja, Bigbasket, Doodhwala must have been feeling the heat. Since the segment has turned hyper-competitive, it would be exciting to observe how micro-delivery unfolds in near future.