Food delivery platform Swiggy raises $700m from Invesco and others | Economic news
New Delhi: Food delivery platform Swiggy said on Monday it had raised $700 million (nearly Rs 5,225 crore) in new funding, led by investment firm Invesco, which will primarily be used to accelerate the growth of its core platform and expand its Instamart fast-commerce grocery service.
The latest funding round values the company at $10.7 billion, nearly double the $5.5 billion valuation when it raised $1.25 billion in July 2021, when investors such as SoftBank, Prosus and Accel injected capital in what was the company’s biggest financing since its inception. .
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, as well as its long-term investor Prosus also participated in the round.
Six months after raising $1.25 billion, the new fundraising is also seeing increased participation from institutional investors from India and around the world, he added.
“This investment comes at a time when the adoption of online food and grocery shopping is accelerating and consumer demand for Swiggy’s many services continues to grow,” the company said.
Swiggy said the food delivery business has nearly doubled in gross order value (GOV) in the past year, this fundraiser will allow it to further accelerate growth on the core platform and make significant investments to develop Instamart, its fast-commerce grocery service.
Instamart remains well-positioned to continue to dominate the emerging quick-trade grocery space and is expected to achieve an annualized GMV (gross merchandise value) operating rate of $1 billion over the next three quarters. The company will also strengthen its investments in the broader ecosystem, according to the release.
Commenting on the new 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 ecosystem impact and accelerate the digital transformation of food and grocery delivery and other on-demand services. »
Majety added: “The GMV that our food delivery business achieved in 40 months, only took Instamart 17 months, demonstrating the benefits of Swiggy’s platform. We will be doubling that to create more categories in accordance to our mission of providing unparalleled convenience to Indian consumers.”
Commenting 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 of 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 that currently it connects consumers to more than 1.85 lakh restaurant partners and stores in more than 500 cities.
Over the past few months, it has expanded Instamart to 19 cities. Swiggy Genie, Swiggy’s pick-up and drop-off service, currently has a presence in 68 cities, while its meat delivery service and daily grocery service, Supr Daily, has a presence in all major Indian cities.
The platform also launched Swiggy One, a comprehensive membership program with benefits on food, groceries and other on-demand services by Swiggy.