Food delivery firm Swiggy will invest more than Rs 680 crore for its subscription-based delivery business under Supr, that delivers milk and other essentials, The Times of India reported, citing two sources.

Supr, which makes over 1 lakh deliveries daily in six cities, was acquired by Swiggy last year. However, no official announcement was made.

The development comes as Swiggy has expanded into hyper-local delivery business under Swiggy Stores and subscription-based home-cooked meal service with Swiggy Daily, the report said.

Swiggy raised about a $1 billion in December last year and is in the process of raising another $500 million to $600 million, the report said, adding that the food delivery firm is aiming to drive a higher frequency of orders, leveraging its logistics network, and the brand built on food delivery.

Investment in Supr is planned for two-three years, the report added.

The development comes at a time when the micro-delivery space is seeing increased competition from vertical players like Milkbasket and Daily Ninja and horizontal players like BigBasket, said the report.

"The segment Supr is working in is serving such a necessity that it can be scaled up beyond the top 10 cities. Swiggy has made in-roads in rural markets and Supr can be taken there too based on the convenience this model offers,” one of the sources was quoted as saying in the report.

When contacted by TOI, there was no response from Swiggy till print time.

First Published:Jul 10, 2019 9:03 AM IST