Swiggy has restructured the management of its e-grocery subscription service, Supr Daily, as part of its objective to strengthen its footprint in the rapidly evolving online grocery delivery market.
Swiggy CEO Harsha Majety notified employees in an internal memo on Tuesday that Supr Daily, which was acquired by Swiggy three years ago, will become a business unit of parent company Bundl Technologies as part of the restructuring.
Puneet Kumar, Shreyas Nagdawane, and Rohit Jain, the founders and founding team of Supr Daily, have already existed from the company. Phani Kishan, who was recently promoted to Swiggy’s co-founder, will be appointed as the new CEO of Supr Daily.
Sriharsha Majety also published a blog post on Swiggy’s website where he wrote, “After several discussions with the leadership team, we have decided to change Supr’s organizational structure to a Business Unit (BU) within Bundl (mirroring the structures we have with Food Delivery, Instamart, etc.), and work more closely to unlock its potential. This will help Supr with the advantages that Swiggy has access to and accelerate its journey.”
According to Majety, the company penetrated the grocery delivery business in 2018 when it acquired Supr Daily. Supr Daily currently has over 500,000 monthly customers and delivers over 200,000 daily orders in six cities. Supr’s support departments of HR, Admin, Legal, IT, and Finance will be merged with Swiggy’s relevant departments. However, Supr Daily will retain its dedicated business teams to facilitate the required focus and flexibility to accomplish its goals.
This decision also coincides when Swiggy is in the middle of a massive fundraising round, in which it is in discussions with investors to seek up to $800 million at a valuation of more than $10 billion, giving it the ability to compete with Zomato, which recently debuted on Indian stock exchanges.
Swiggy bought Supr Daily in an all-cash deal in September 2018 as part of its strategy to penetrate the e-grocery subscription market. Supr Daily is a grocery delivery service that delivers milk, eggs, bread, fruits, vegetables, and other items on a daily basis. The food-tech giant, also introduced Instamart, an instant grocery delivery service, and Swiggy Genie, a pick-and-drop service, last year, is aggressively aiming to expand its overall footprint in the hyperlocal domain.
During the pandemic last year, Zomato decided to enter the e-grocery delivery sector in order to resolve the surging demand for online groceries. The company exited the sector earlier this year, claiming that its involvement in the foods vertical last year was solely to meet the requirements. In order to support this plan, the company later invested $100 million in Grofers, another grocery delivery startup. However, it eventually decided to scrap its plans to penetrate the e-grocery market.