Prosus eyes Rs 150 crore bet on Swiggy Instamart rival BazaarNow

Prosus is in talks to invest Rs 150 crore in BazaarNow, the grocery delivery startup founded by ex-Zepto executives, as it looks to carve out a niche in Tier 2 and 3 cities. The deal, if completed, would follow recent discussions involving Prosus and other Indian startups, suggesting renewed interest in the market.

BazaarNow’s pitch is simple: it sells groceries and daily essentials, but unlike Swiggy Instamart or Zepto, it focuses on local and regional brands rather than national labels. The startup raised Rs 72 crore in June from Peak XV Partners and others, and currently operates in 131 cities—Instamart’s footprint, for comparison, is broader. The Rs 150 crore figure, if finalized, would significantly boost BazaarNow’s funding.

What makes this story interesting isn’t just the money, but the timing. Quick commerce in India has spent the last two years retrenching after the pandemic boom. Blinkit and Instamart have pulled back from smaller cities, while Zepto has doubled down on hyperlocal delivery in metros. BazaarNow, by contrast, is betting that regional brands and lower customer acquisition costs in Tier 2/3 markets can make the unit economics work. The question is whether Prosus sees enough evidence of that thesis to proceed.

Prosus’s recent activity in Indian startups is worth watching. The investor has been selective in fresh deals in the country in recent years, preferring to focus on exits and follow-ons. Its potential Rs 150 crore bet on BazaarNow could signal a shift in strategy, either testing the waters for a broader return to Indian venture capital or backing specific opportunities it believes can scale efficiently.

But building a viable model in smaller cities presents unique challenges, including fragmented demand and higher logistics costs. The startup’s June round was a vote of confidence from Peak XV, but a larger check from Prosus would suggest deeper conviction in its potential.

The open question is what happens next. If Prosus closes the deal, it could encourage more funding for quick-commerce startups outside major cities. If it walks away, BazaarNow may face hurdles in raising further capital—especially if larger players decide to expand into its markets. Either way, the outcome will offer insight into whether India’s quick-commerce sector can sustain multiple players beyond metros.

Sources: economictimes.indiatimes.com