Swiggy gets $1bn in latest funding round
Swiggy, the online food delivery service provider, has raised $1 billion in its latest round of funding, led by South African internet giant Naspers, which is an existing investor in the Bangalore-based start-up.
This is the largest ever fund-raising in the domestic food technology sector and will give Swiggy more muscle to compete with players such as Zomato and FoodPanda.
The Series H round values the food delivery platform at over $3 billion.
Swiggy, in a statement, said on Thursday it had executed definitive agreements for a $1-billion round of funding led by Naspers and saw new investors — Tencent, Hillhouse Capital and Wellington Management Company coming on board.
The latest funding also saw participation from other existing investors, including DST Global, Meituan Dianping and Coatue Management, it added.
Swiggy will use the money to bring more quality food brands closer to consumers and plug gaps in supply via delivery-only kitchens under the “Access” initiative for restaurant partners.
Swiggy will also use the capital to hire talent, particularly for machine learning and engineering roles across mid and senior levels.
“As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share our purpose and have made such a significant investment in our future,” Swiggy CEO Sriharsha Majety said.
In June, Swiggy turned an unicorn after it raised $210 million in funding led by Naspers and new investor DST Global. The transaction also saw the participation from Meituan-Dianping and another new investor, Coatue Management.
Swiggy was then valued at over $1.2 billion. In February, it had raised $100 million in a Series F round, also led by Naspers with participation from Meituan-Dianping. Inclusive of the latest round, Swiggy has raised a total of $1.26 billion.
“We first partnered Swiggy in April 2017 because we recognised the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has 10 times the number of orders per month since our first investment and has expanded throughout India,” said Larry Illg, CEO, Food and Ventures, Naspers.
Swiggy added that since the last funding round six months ago, it has expanded to 42 additional cities and doubled in gross merchandise value as it strengthened its market share along with strong repeat rates.
The firm, which was founded in 2014, has over 50,000 restaurant partners spread across more than 50 cities. This latest funding round will give it more muscle to compete against rivals like Zomato and Foodpanda.