The food delivery giant’s valuation has almost doubled to $10.7 bn, making it India’s second most valuable startup after edtech giant Byju’s, which is currently valued at $21 billion

Swiggy raises $700 mn in new funding round led by Invesco

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Swiggy to invest $700 mn in its express grocery delivery service Instamart

Bengaluru, NFAPost: Food delivery giant Swiggy has raised $700 million in new funding led by Invesco. The round also saw participation from a host of new investors such as 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’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.

According to Arvian Research, Swiggy has become a decacorn as its valuation has almost doubled to $10.7 billion, making it the second most valuable startup in India after edtech giant Byju’s, which is currently valued at $21 billion, the first domestic start-up to reach the mark.

“Bengaluru-based Swiggy has overtaken budget hospitality company Oyo, whose valuation dropped to $8 billion in 2020 from $10 billion in 2019 and then increased to $9 billion in 2021. Swiggy has also overtaken sports technology company Dream Sports, the parent firm of fantasy sports platform Dream11, completed an investment of $840 million at a valuation of $8 billion last year in November,” states Arvian Research.

This investment in Swiggy 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.

While the food delivery business has nearly doubled in gross order value (GOV) in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart. 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 fundraise will give Swiggy enough firepower to take on rivals such as Zomato, Amazon, Flipkart, Dunzo, Licious and Ola Foods

Swiggy CEO and co-founder Sriharsha Majety said the GMV the 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,” said Swiggy CEO and co-founder Sriharsha Majety.

Swiggy CEO and co-founder Sriharsha Majety said the company’s 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,” he added.

Last year in July, Swiggy had closed a $1.25-billion fundraise, marking the first investment in the category by SoftBank Vision Fund 2.

This took the valuation of the startup up by more than 50 per cent to $5.5 billion from $3.6 billion earlier, according to industry sources.

In the last few months, Swiggy has expanded Instamart, its quick commerce grocery service to 19 cities, while consistently working towards optimizing its selection and delivery time. 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.

It also launched Swiggy One, India’s first comprehensive membership programme with benefits across food, groceries, and other on-demand services by Swiggy. With multiple growth catalysts in place to drive its continued expansion, Swiggy is well-positioned for 2022 and beyond.

“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,” said Justin Leverenz, Chief Investment Officer, Invesco Developing Markets Fund.

Before starting Swiggy, Majety quit his job as a banker at Nomura, Japan’s largest investment bank, and went on a backpacking trip by bicycle to Portugal, Spain, France, Italy and Greece, peddling 3,200 km. After returning, he founded a logistics platform for online retailers, which he had to shut down. An alumnus of Birla Institute of Technology & Science Pilani, Majety launched Swiggy in Bengaluru’s Koramangala neighbourhood along with his college mate Nandan Reddy and IIT Kharagpur graduate Rahul Jaimini in 2014.

Swiggy, which has transformed into a leading on-demand convenience platform, now connects consumers to over 1,85,000 restaurant partners and stores in over 500 cities. Its express delivery service Instamart is present in 19 cities. Every order delivered by Swiggy’s delivery executives, ensures a host of customer-centric features like fast delivery, no minimum order value, live order tracking, and 24/7 customer support.

Swiggy valuation Funding

· $10.7 bn $700 mn in Jan 2022

· $5.5 bn $1.25 bn in July 2021

· $3.6 bn $43 mn in Apr 2020

· $3.5 bn $113 mn in Feb 2020

· $3.3 bn $1 bn in Dec 2018

· $1.2 bn $210 mn in Jun 2018

· $700 mn $100 mn in Feb 2018

· $400 mn $80 mn in May 2017

· $200 mn $15 mn in Sept 2016

· $100 mn $35 mn in Jan 2016

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