Swiggy has raised $1.25 billion from SoftBank Vision Fund II as well as existing investors Prosus ( formerly Naspers), Accel, and Wellington Management. Swiggy is a Bengaluru-based Indian startup which is now is now valued at $5.5 billion, an increase of more than 50% from the $3.6 billion it was valued in April last year.
It has proved to be the largest funding round for the online food delivery company since it launched its service in 2014. The investment came in two tranches beginning earlier this year where firms like Qatar Investment Authority and Goldman Sachs and others invested 800 million dollars. Competition Commission of India recently cleared Softbank’s investment in Swiggy which invested 450 million dollars in the second tranche. After a lot of deliberation, SoftBank finally bet on India’s food delivery tech giant.
Another Indian food delivery giant, and Swiggy’s arch-rival, Zomato, closed its initial public offering last week which was oversubscribed by more than 40 Times. Both Swiggy and Zomato were severely hit by the pandemic. But the value of orders at Swiggy is processing now has increased by 30% compare to Pre covid times.
“The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission and ability to build an enduring and iconic company out of India. The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category,” said Sriharsha Majety, chief executive of Swiggy, in a statement.
“Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span, especially in the past 15 months of the pandemic. I believe the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users.”
Swiggy is planning to expand its business in grocery delivery services. Swiggy shirt that the new funds will be deployed an accelerated multi-year strategy of growing its ko food business and also developing new food and non-food adjacencies this year and beyond.
“From its early days, I have had the privilege to watch Swiggy execute on their vision to become the leader in the convenience economy. Their focus on consumer delight, product innovation, and ecosystem support has made Swiggy a compelling digital experience in India. They have the railroads in place to empower multiple businesses to reach the new age consumer daily, and food delivery is just the beginning,” said Sumer Juneja, partner at SoftBank Investment Advisers, in a statement.