Swiggy becomes decacorn, valuation crosses $10.7 bn in new funding round
- IBEF
- January 25, 2022
Swiggy, the world's largest food delivery service, has raised US$ 700 million in additional capital headed by Invesco. 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 were among the new investors in the round. The financing included current investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, as well as long-term investor Prosus. Swiggy has become a decacorn, according to sources, as its valuation has nearly quadrupled to US$ 10.7 billion, making it India's second most valuable company after edtech behemoth Byju's, which is presently valued at US$ 21 billion, making it the first local start-up to reach that milestone.
Swiggy has also surpassed Dream Sports, the parent company of fantasy sports website Dream11, which completed an US$ 840 million investment at a US$ 8 billion valuation last November. Swiggy's investment comes at a time when food and online grocery usage is accelerating, and consumer demand for Swiggy's multiple offerings is growing.
While the food delivery industry's gross order value (GOV) has nearly doubled in the previous year, this funding will allow Swiggy to accelerate expansion on its core platform and make significant investments in Instamart. Instamart is expected to attain a US$ 1 billion annualised GMV (gross merchandise value) run rate in the next three quarters, putting it in a strong position to continue to lead the developing rapid commerce food industry.
“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,” said Sriharsha Majety, CEO and co-founder, Swiggy. “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,” he added.
“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,” said Justin Leverenz, Chief Investment Officer, Invesco Developing Markets Fund. “Our investment in Swiggy represents such an investment.”
Swiggy has grown into a leading on-demand convenience network, connecting customers to over 1,85,000 restaurant partners and retailers in over 500 locations. Instamart, its express delivery service, is available in 19 cities. Every order delivered by Swiggy's delivery professionals comes with a number of consumer-friendly features such as speedy delivery, no minimum order value, real-time order tracking, and 24-hour customer service.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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