Here and now grocery delivery business has turned hyper-competitive in 2021 and Swiggy’s Instamart is also set to ensure grocery delivery within 15 minutes.
The Bengaluru-based company has announced that it will start the 15 minutes service from January 2022. To grow Instamart, Swiggy will also invest $700 million, said the company in a press statement. The express grocery delivery service claims 142K orders originating every day from 18 cities and to reach $1 billion in GMV by September.
Instamart would leverage a network of dark stores to facilitate delivery with 15 minutes. Apart from grocery, the platform provides vegetables, fruits, meat et al.
With express delivery service, Swiggy will directly compete with Zomato-backed Grofers and Zepto that raised $60 million in its maiden round recently. Ola also made re-entry into the quick grocery delivery segment starting from Mumbai and Bengaluru.
The express delivery service from Swiggy is coming at a time when the company is raising a new funding round up to $700 million at over $10 billion in valuation. According to Entrackr’s sources, Instamart has been positioned as an anchor for this new round. Meanwhile, Zepto is also in talks to raise $100 million at a $500 million valuation. Entrackr had exclusively reported this in November.