Food delivery platform Swiggy has rejigged the leadership for Supr Daily, a subscription-based delivery service for milk, daily essentials and groceries three years after acquiring it, in a bid to unlock value and accelerate growth.
This also come at a time when Swiggy is in the middle of a fundraising round, where it is in talks with investors to raise $500-$600 million at a valuation of over $10 billion, giving it the firepower to compete with Zomato, which listed on the Indian markets recently. While Zomato has been heavily focussed on the food delivery business, Swiggy has been expanding its instant grocery service, Instamart, apart from its daily subscription service Supr Daily.
In a blog, Swiggy founder and CEO Sriharsha Majety said Supr's organisational structure will now change to a business unit within its holding company Bundl Technologies. This is similar to the structure that it has for its food delivery service, Instamart, and private brands. He said the move would help unlock potential and accelerate growth.
"Moments of change are moments of contemplation and after much reflection, the founding team of Supr Daily comprising Puneet, Shreyas and Rohit have decided to pursue new interests outside of Swiggy," he said. Supr Daily was founded by IIT Bombay graduates Shreyas Nagdawane and Puneet Kumar in 2015.
Phani Kishan, who was recently elevated to co-founder will take charge as the CEO of Supr Daily. The support functions of HR, Admin, Legal, IT and Finance from Supr will be integrated into the relevant functions with Swiggy while it will continue to have dedicated business teams. Supr Daily currently serves ~500k customers on a monthly basis and delivers ~200k daily orders across six cities.
Talking about the overall business, Majety said the food delivery business is comfortably surpassing its pre-covid peak, while also being on the path to overall profitability.
"While food delivery continues to be our flagship category, we’ve also made some great progress in realising our larger vision of elevating the quality of life by delivering unparalleled convenience.
"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," he said.
The Covid-19 pandemic has turbo-charged the adoption of online grocery by consumers who want superfast delivery – the faster the better. From 30 minutes to 15 minutes to even 10 minutes- the likes of Swiggy, Dunzo and Grofers are pushing the limits when it comes to delivering groceries to customers in record time.
In a recent interview with Moneycontrol, Swiggy's founder and CEO Sriharsha Majety spoke about the company's ambitions to expand into breakout areas such as grocery and meat delivery.
In July, Swiggy closed a $1.25 billion funding round, its biggest till date, as it doubles down on non-food delivery categories such as grocery (Instamart), pick up and drop services (Swiggy Genie), subscription-based milk delivery (Supr Daily), and its meat delivery vertical.
"Our mission is to deliver unparalleled convenience to urban consumers. So you will definitely see us offering a lot more offerings in the next 5-10 years, we will continue inventing and figuring out what our consumers need and how we can serve them better. So that is the path that we are going to take," he said in the interview.