(Bloomberg) -- Indian food delivery platform Swiggy will spend $700 million on growing its express grocery service Instamart, the startup said in a statement Thursday.

Swiggy Instamart was launched in 2020 in Gurugram and Bangalore and now operates in 18 cities, according to the statement. The service could reach an annual gross merchandise value run rate of $1 billion in the next three quarters, Swiggy CEO Sriharsha Majety said, citing the business’s current growth trajectory.

The food delivery startup is raising $600 million to $700 million in a round led by Invesco that’s due to close this month, Bloomberg reported Wednesday. The deal values Swiggy, formally known as Bundl Technologies Pvt., at about $10.5 billion, people with knowledge of the matter told Bloomberg. Swiggy’s statement on Thursday didn’t comment on the fundraising. 

Read more about Swiggy’s fundraising

Backed by the likes of SoftBank Group Corp., Swiggy is among a slew of Indian startups disrupting traditional industries as more consumers venture online. It competes with fellow unicorn Zomato Ltd., which went public this year in a $1.3 billion initial public offering, and the food delivery arm of Amazon.com Inc.’s India unit. 

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