Food delivery platform Swiggy raises $700 mn in fresh funding; company valued at $10.7 bn

Food delivery platform Swiggy raises $700 mn from Invesco, others
A delivery man working with Swiggy, an online food delivery application, rides his bike on a deserted road to deliver an order in Mumbai on April 7, 2020. Photo: Punit Paranjpe/AFP

New Delhi: Food delivery platform Swiggy on Monday said it has raised $700 million (nearly Rs 5,225 crore) in new funding, led by investment firm Invesco, which will be mainly used for accelerating growth of its core platform and growing its quick commerce grocery service Instamart.

The latest round of funding values the company at $10.7 billion, almost doubling it from the $5.5 billion valuation during the $1.25 billion fund raise in July 2021 when investors including SoftBank, Prosus and Accel pumped in capital in what was the company's biggest funding since its inception.

The other new investors in the latest round of funding include Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital, Swiggy said in a statement.

Swiggy's existing investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, along with its long-term investor Prosus also participated in the round.

Six months after raising $1.25 billion, the new fundraise also sees increased participation of institutional investors from India and across the globe, it added.

"This investment comes at a time when the adoption of food and online grocery is accelerating and the consumer demand for Swiggy's many services continue to grow," the company said.

Swiggy said the food delivery business has nearly doubled in gross order value (GOV) in the last year, this fundraise will enable it to further accelerate growth on the core platform and make meaningful investments to grow Instamart, its quick commerce grocery service.

Instamart remains well-positioned to continue to lead the emerging quick commerce grocery space and is set to reach an annualised GMV (gross merchandise value) run rate of $1 billion in the next three quarters. The company will also further strengthen its investments in the broader ecosystem, the statement said.

Commenting on the fresh round of funding, Swiggy CEO Sriharsha Majety said, "Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services."

Majety further said, "The GMV our food delivery business achieved in 40 months, took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers."

On its investment in Swiggy, Invesco Developing Markets Fund Chief Investment Officer Justin Leverenz said, "As long-term investors, the Invesco Developing Markets fund seeks investment opportunities in the best companies in the world, led by world-class management teams, and that have the potential for long-term structural growth. Our investment in Swiggy represents such an investment."

Swiggy said at present it connects consumers to over 1.85 lakh restaurant partners and stores in over 500 cities.

In the last few months, it has expanded Instamart to 19 cities. Swiggy Genie, Swiggy's pick up and drop service is currently present in 68 cities, while its meat delivery service, and daily grocery service, Supr Daily are present across all major Indian cities.

The platform has also launched Swiggy One, a comprehensive membership programme with benefits across food, groceries, and other on-demand services by Swiggy.

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