Foodtech unicorn has raised $700 million in funding led by Invesco, six months after it raised $1.25 billion. Swiggy is now valued at $10.7 billion, up from its previous $5.5 billion.
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. This investment comes at a time of accelerated adoption of food and online grocery and a rise in consumer demand for Swiggy’s services.
“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, Swiggy.
Justin Leverenz, Chief Investment Officer, Invesco Developing Markets Fund, said, “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 has the potential for long-term structural growth. Our investment in Swiggy represents such an investment.”
In a statement, the company claimed that 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.
It added that Instamart is set to reach an annualised GMV run rate of $1 billion in the next three quarters. The company will also further strengthen its investments in the broader ecosystem.
“Our goal is to make Swiggy a 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,” Sriharsha added.
In the last few months, Swiggy has expanded Instamart, its quick commerce grocery service to 19 cities. Swiggy Genie, its 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, a 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.
Edited by Saheli Sen Gupta