Snabbit Raises $1.9 Million; Plans for Expansion

May 29, 2025

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Quick-service app Snabbit has secured $1.9 million in a seed funding round led by Lightspeed Venture Partners, with participation from various angel investors including founders of startups like Fashinza, Mosaic Wellness, and OfBusiness.

As India’s rapid commerce ecosystem continues to grow, Snabbit aims to revolutionize instant access to daily essentials and FMCG products by focusing on 10-minute deliveries from local stores.

The dual developments signal CRED’s attempt to diversify its offerings while navigating a cooling investor sentiment in the broader startup ecosystem.

Lightspeed’s Backing and Vision for Fast Commerce

The seed funding round was spearheaded by Lightspeed, a prominent VC firm known for backing high-growth startups.

Snabbit’s model leverages local kirana stores as micro-fulfillment centers, enabling it to sidestep high infrastructure costs while offering hyperlocal delivery within 10 minutes. The founders plan to use this capital to expand operations across Tier 1 and Tier 2 cities, refine logistics tech, and hire talent across engineering and growth.

Market Opportunity and Snabbit’s Differentiator

India’s quick commerce market is expected to cross $5 billion by 2025, with intense competition from giants like Zepto, Blinkit, and Swiggy Instamart. However, Snabbit differentiates itself by partnering directly with local stores rather than owning inventory. This not only reduces capex but also improves operational efficiency and geographical reach—key to scaling in non-metro regions.

As of now, Snabbit operates primarily in Mumbai, with a notable presence in areas like Powai. The company has served over 10,000 customers in the city and is actively expanding to additional micro-markets within Mumbai.

With the recent $19 million funding led by Lightspeed Venture Partners, Snabbit plans to extend its services to other cities across India. However, specific details about the new cities have not been disclosed yet.

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