Bengaluru-based startup Swish has secured $38 million in a new funding round led by Hara Global and Bain Capital Ventures, with continued backing from existing investor Accel. The round also includes venture debt support from Alteria Capital and Stride Ventures.
The newly raised funds will be directed toward expanding Swish’s operations and strengthening its quick delivery infrastructure. The company aims to build on its current network and improve service efficiency as it scales.
Strengthening a Rapid Delivery Model
Founded in 2024, Swish operates on a 10-minute food delivery model designed to cater to high-demand urban areas. The company relies on a network of cloud kitchens strategically located near customer clusters, allowing it to minimize delivery times.
By focusing on a limited delivery radius, Swish ensures faster order fulfillment while maintaining operational efficiency. This hyperlocal approach has become central to its strategy as it competes in a highly time-sensitive segment of the food delivery market.
Also Read: Heidi Health’s hardware bet takes clinical AI beyond the phone
Sharp Rise in Daily Orders
The company has reported strong growth in its order volumes over a short period. According to Swish, its daily orders have increased to around 20,000, up from approximately 5,000 just four months ago. This rapid growth highlights increasing consumer demand for ultra-fast food delivery services, particularly in densely populated urban areas.
The surge in orders also indicates that Swish’s model is gaining traction despite the operational challenges typically associated with quick delivery formats.
A Competitive Yet Challenging Segment
Swish operates in the ultra-fast food delivery space alongside major players such as Zomato, Swiggy, and Zepto. However, the segment has proven difficult to sustain, with several companies scaling back or shutting down similar initiatives.
Swiggy discontinued its 10 to 15-minute delivery app Snacc within a year of its launch. Zomato paused its 15-minute service Quick shortly after introducing it. Zepto also reduced its quick service vertical Zepto Café, closing around 200 out of its 600 outlets as part of a broader restructuring effort.
These developments underline the operational complexity and cost pressures associated with ultra-fast delivery models, even for well-established companies.
Mixed Outcomes Across Industry Players
While several companies have pulled back from the space, some continue to experiment with instant food delivery. Zomato-owned Blinkit is still operating its instant food offering Bistro. Meanwhile, Ola has placed its Ola Foods delivery service on hold following a relaunch.
The contrasting approaches reflect ongoing uncertainty around the long-term viability of ultra-fast food delivery, with companies adjusting strategies based on performance and cost considerations.
Positioning for the Next Growth Phase
Swish’s latest funding round comes at a time when the ultra-fast delivery segment is undergoing significant churn. Despite the challenges faced by competitors, the startup’s recent growth in order volumes and its focused operational model appear to have attracted investor interest.
As the company moves forward, its ability to scale efficiently while maintaining quick delivery timelines will be critical. The fresh capital is expected to play a key role in supporting this next phase of growth, as Swish looks to strengthen its presence in India’s evolving food delivery landscape.
Also Read: Kidbea Raises Rs 30 Crore in Series A Led by Enrission India Capital
