Swiggy is bringing daily milk and eggs subscription service Supr Daily that it had bought in September 2018 to foray into e-grocery subscription under parent Bundl Technologies, the foodtech major’s chief executive Harsha Majety said in an internal memo on Tuesday.
As a part of this, Phani Kishan who was recently elevated to Swiggy’s co-founder will be taking over as chief executive of Supr Daily.
The founders of Supr Daily including Puneet Kumar, Shreyas Nagdawane and Rohit Jain have quit the company, Majety said.
“We have decided to change Supr’s organisational structure to a business unit (BU) within Bundl (mirroring the structures we have with food delivery, Instamart, private brands, etc.), and work more closely to unlock its potential. This will help Supr with the unfair advantages that Swiggy has access to and accelerate its journey,” said Majety in the internal mail to employees.
“With this change, the support functions of HR, admin, legal, IT and finance from Supr will be integrated into the relevant functions with Swiggy and will immediately start tapping into the resources and structures we already have available. Supr Daily will continue to have dedicated business teams to ensure the necessary focus and nimbleness to achieve their goals,” added Majety.
Since acquisition, Supr Daily has scaled its services to over 500,000 customers, while delivering 200,000 daily orders across six cities.
Swiggy, which forayed into instant grocery service through Instamart as well as pick-and-drop service through Swiggy Genie, is actively looking to ramp up its overall play in the hyperlocal space.
Mint reported earlier this month that the company has also held early talks to acquire hyperlocal delivery services startup Dunzo. The company is also in active talks with US-based asset management firm Invesco to raise up to $800 million at a valuation of $10 billion.
In July 2021, Swiggy said it has raised $1.25 billion from investors, including SoftBank and Prosus, nearly matching the funds raised by rival Zomato in an initial public offering (IPO), as the two companies battle to dominate India’s food delivery market.
The fundraising valued Swiggy at $5.5 billion, an increase of more than 50% from the $3.6 billion it was valued at in April last year.
Investors’ confidence in Swiggy comes amid rival Zomato concluding a successful IPO. Moreover, Swiggy’s newer bets, including Genie and Instamart, have bolstered investors’ confidence in the company’s strategy to diversify its revenues.
“Over the last 15 months, we’ve made some exciting progress on our food delivery business. We’re now comfortably surpassing our pre-Covid peak, while also being on the path to overall profitability [...] We’ve done this on the back of strong traction in the grocery delivery business. This business is 10x the size of the food services industry; I strongly believe that with the right investments and focus, we have the potential to build a category that is larger than our food delivery business,” said Majety to employees on Tuesday.
As Swiggy ramps up its investments in groceries, rival Zomato recently pulled the plug on its grocery foray for the second time in two years. Further, the Gurugram-based foodtech stated that it has no immediate plans to explore the category in the near future.