Swiggy To Invest $700 Million In Grocery Delivery Service Instamart

First launched in Bengaluru and Gurugram last year, Instamart is set to reach an annualised gross merchandise value run rate of $1 billion.

SoftBank-backed food delivery startup Swiggy said on Thursday it would invest $700 million in its grocery delivery service Instamart, to strengthen its footing in a highly competitive domestic market.

First launched in Bengaluru and Gurugram last year, 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.

Home delivery companies in India were hit by a sudden pandemic-related lockdown last year as health concerns discouraged people from ordering in, but as the initial hesitancy eased, food and grocery delivery apps like Swiggy reaped the benefits of fewer people stepping out.