Prosus, the Dutch technology investment giant and the largest shareholder in Swiggy, is reportedly in talks to invest around ₹150 crore in BazaarNow, a grocery delivery startup founded by former Zepto executives. The potential deal could value the young company at nearly ₹900 crore, according to reports.
The proposed investment is notable not just because of the size of the cheque, but also because of the competitive dynamics involved. Swiggy’s quick-commerce arm, Instamart, operates in the same broad market that BazaarNow is trying to build, putting Prosus in a potentially unusual position of backing a startup that competes with one of its largest portfolio companies.
BazaarNow was founded by Priyanshu Jain, Arjun Harish and Tarithmay Mandal, all former executives at quick-commerce major Zepto. Instead of focusing primarily on the largest urban markets, the startup is targeting grocery delivery in Tier-2 and Tier-3 cities, where the quick-commerce race is still developing.
The company’s strategy reflects a broader opportunity emerging outside India’s biggest metropolitan areas. While companies such as Blinkit, Instamart and Zepto have built extensive networks across major cities, smaller markets remain relatively fragmented and continue to rely heavily on neighbourhood stores and traditional retail.
For BazaarNow, that gap could provide room to establish a localised delivery network before the largest players expand aggressively into these markets.
Credits: Inc42
BazaarNow Already Has Peak XV Backing
The Prosus discussions come just months after BazaarNow raised ₹72 crore from Peak XV Partners in June. The funding gave the startup fresh capital to develop its operations and expand its presence across smaller cities.
The reported ₹150 crore investment from Prosus would significantly increase the company’s financial firepower if completed. At a potential valuation of around ₹900 crore, the transaction would also give BazaarNow a substantially higher valuation than the level implied by its previous funding round.
The fresh capital could be used to strengthen its technology infrastructure, expand delivery operations, establish more local fulfilment points and increase its presence across additional Tier-2 and Tier-3 markets.
That approach is particularly relevant in grocery delivery, where success depends on more than simply having an app. Delivery density, inventory availability, local demand patterns and fulfilment costs can all determine whether a market makes commercial sense.
BazaarNow’s founders bring experience from Zepto, giving the startup a team familiar with the operational challenges involved in building a fast-moving grocery delivery business.
Prosus’ Investment Creates an Interesting Swiggy Dynamic
The reported investment also puts Prosus in an interesting position within India’s fiercely competitive quick-commerce sector.
Prosus is Swiggy’s largest shareholder, while Swiggy’s Instamart is one of BazaarNow’s competitors. By potentially investing in BazaarNow, Prosus would therefore be backing a company operating in a segment where another major business in its portfolio is already active.
However, the two businesses are not necessarily pursuing identical strategies. Instamart has built its business around Swiggy’s broader consumer ecosystem and operates across numerous Indian markets. BazaarNow, meanwhile, is concentrating on smaller cities and towns that have historically received less attention from the country’s biggest quick-commerce platforms.
That difference could allow BazaarNow to carve out its own position rather than directly competing for the same customers in every market.
Credits: IndianStartupNews
Conclusion:
India’s quick-commerce industry has expanded rapidly, with companies investing heavily in dark stores, delivery networks and customer acquisition. As the largest markets become increasingly competitive, smaller cities are emerging as the next potential growth frontier.
For BazaarNow, the reported Prosus investment could provide the capital needed to accelerate that expansion. For Prosus, the move would offer exposure to another fast-growing grocery delivery business while adding an intriguing layer to its existing relationship with Swiggy.
The deal has reportedly not been finalised, meaning its valuation and investment terms could still change. If completed, however, the transaction would underline growing investor interest in taking India’s quick-commerce model beyond the country’s biggest cities.