Food delivery unicorn Swiggy has earmarked an investment of $100 million for its subscription-based delivery business under Supr Daily, which delivers milk, vegetables/fruits, and other daily essentials to consumers, The Times of India reported.
Swiggy is already sitting on a $1-billion corpus, which it raised in a funding round led by existing investor Naspers Ltd in December last year. It is also reportedly in talks to raise money from US-based private equity fund Carlyle Group.
Swiggy acquired Mumbai-based Supr Daily last year in a cash plus stock deal. It is currently offering services in six cities including Bengaluru, Pune, and Hyderabad, and claims to be doing more than 1 lakh deliveries per day.
The micro-delivery app, which was launched in 2015, continues to be run by its founders Shreyas Nagdawane and Puneet Kumar post the acquisition. Swiggy hasn’t made any official announcement on the deal yet or disclosed any brand association with Supr Daily.
The unicorn startup is, however, eyeing scale and higher frequency or orders through the addition of newer verticals. It has also ventured into hyper-local delivery business under Swiggy Stores and subscription-based home cooked meal with Swiggy Daily. As a result, it is reported to have grown its monthly user base by 10 times to about 1,50,000 in the last six months.
According to a recent Mint report, Swiggy has launched operations in 185 towns and cities in 2019 alone. The new cities constitute 15 per cent of its business.
The foray into the micro-delivery space has put Swiggy in direct competition with the likes of Google-backed Dunzo, BigBasket’s BB Daily, Milkbasket and DailyNinja. It is, however, heavily funded compared to its peers.
According to Crunchbase, Swiggy has raised $1.5 billion in funding till date while BigBasket, which is backed by China’s Alibaba Group, is sitting on a $989.5-million corpus. Milkbasket recently raised debt funding from venture debt firm InnoVen Capital and has secured $32 million in total so far. Meanwhile, DailyNinja has raised $10 million in funding so far.
Swiggy also counts China’s Tencent Holdings Ltd, Meituan Dianping, Coatue Management, Hillhouse Capital, DST Global, and Wellington Management Co. among its investors.