Indian food delivery giant Swiggy raises $700 million at $10.7 billion valuation


Six months after raising $1.25 billion in funding, Swiggy, India’s leading food delivery startup, has raised $700 million in a new financing round as it aggressively expands its offerings, which now include an instant-delivery service in the South Asian market. Swiggy is India’s leading food delivery startup.

An insider familiar with the situation said that Invesco led the Series K investment, which valued the seven-year-old Bengaluru-based business at $10.7 billion, according to a source familiar with the situation. Swiggy was valued at $5.5 billion when it went public in July of last year.

Today, Swiggy is valued at $10.7 billion, surpassing the price of its 13-year-old major competitor Zomato, which went public last year and has seen its market capitalization fall to less than $10 billion since then.

Among those who participated in the round were new investors Baron Capital Group, Sumeru Venture, IIFL AMC Late Stake Tech Fund, Kotak, Axis Growth Capital, Sixteenth Street Capital, Ghisallo, Smile Group, and Segantii Capital, as well as existing investors Prosus Ventures, Alpha Wave Global, Qatar Investment Authority, and ARK Impact.

In late September, TechCrunch claimed that Invesco was in discussions to spearhead a $500 million investment in Swiggy, according to the publication.

Swiggy announced the fresh capital after a successful year of development in which the firm almost quadrupled the gross order value of its meal delivery operation, according to the company. Swiggy’s rapid delivery service, Instamart, is on track to hit a $1 billion annual gross merchandise volume run rate in the next three quarters, according to the firm.

Also Read for More Info:   Setting up high-conversion lead magnets that deliver value

The Swiggy Instamart platform has emerged as one of the company’s primary emphasis areas over the last year and a half.

The business, which already operates in more than 500 Indian locations, said last year that it wants to spend $700 million to expand its capabilities and geographic footprint. It is becoming more competitive in India in the fast-delivery category, making significant inroads in several regions over the last several years.

Last year, the $100 million fundraising round for Zepto, a Mumbai-based company that provides 10-minute delivery, was headed by Y Combinator Continuity Fund. BlinkIt (previously known as Grofers), a Zomato-supported company that, like Swiggy, is funded by SoftBank, made the transition to the quick delivery industry last year.

As long-term investors, the Invesco Developing Markets Fund seeks investment opportunities in the top firms globally, headed by world-class management teams, and with the potential for long-term structural development, according to Justin Leverenz, Chief Investment Officer of the fund. We believe that our investment in Swiggy reflects such an investment.

Sriharsha Majety, co-founder and chief executive of Swiggy, said that Instamart had achieved a GMV in only 17 months, while the core food delivery company required 40 months to achieve the same level of success.

Eventually, we want 100 million people to use Swiggy 15 times a month, which is our target.” To have a positive influence on the ecosystem and advance the digital revolution of food and grocery delivery, as well as other on-demand services,” he said, “we will continue to invest in our people, products, and partners.”

Also Read for More Info:   Meet Paysail, the startup making B2B payments faster using crypto

Indian food services sector, which is predicted to reach $97 billion by March of 2026, is at risk, according to Bernstein analysts who issued a study for their clients earlier this year.

In addition, the Indian food services business is enormous, with a projected value of $97 billion by FY25. Organized foodservice is increasing at a higher rate than the rest of the industry, and it is predicted to have a 55 percent market share by FY25. By FY25, we expect internet penetration will reach 20%, and the market size will reach $20 billion, with a compound annual growth rate of 46 percent (CAGR). Acquisition of new customers and expansion into new and emerging areas will account for a significant portion of the company’s development. “Zomato had 10 million monthly transactional users (MTU) in FY20, with the number predicted to grow fivefold by FY25 to a total of 50 million,” the authors said.

Although Amazon, a third participant, has just joined the Indian food delivery market, according to a Zomato official who spoke at a public meeting last year, the American e-commerce giant has yet to make significant inroads into this sector.


Please enter your comment!
Please enter your name here