Swiggy closes USD 1.25 billion funding led by SoftBank Vision Fund 2, Prosus
Food ordering and delivery platform Swiggy on Tuesday announced the closure of USD 1.25 billion (about Rs 9,345 crore) funding led by SoftBank Vision Fund 2 and Prosus. According to sources, with the closure of this round, the valuation of the company will come to $ 5.5 billion (about Rs 41,125 crore).
This comes close on the heels of the closure of competitor Zomato’s mega initial public offering (IPO), which gives Zomato a valuation of Rs 64,365 crore.
Swiggy said in a statement that the funding is the first investment in the Indian food delivery category by SoftBank Vision Fund 2, in partnership with the company’s long-term investor Prosus and other existing investors Accel Partners and Wellington Management.
It added that this latest fundraising was heavily oversubscribed after strong investor interest, and Swiggy’s rapid recovery from the impact of COVID-19 and subsequent growth in 2020-21 comes behind.
Swiggy CEO Sriharsha Majeti said, “The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission and ability to build a sustainable and prestigious company out of India.”
He added that the food delivery space in India is huge and the company will continue to invest aggressively to grow the category over the next few years.
“Our biggest investments will be in our non-food businesses, which have seen tremendous consumer love and growth in a very short period of time, especially in the last 15 months after the pandemic,” Mazetti said.
Swiggy said the investment will further accelerate the company’s multi-year strategy of growing its core food delivery business and building new food and non-food proximity in 2021 and beyond.
To support this, Swiggy will enhance its capabilities in technology and artificial intelligence (AI), and strengthen teams in engineering, product, data science and analytics as well as business and supply chain for its new initiatives.
Sources said that with the end of this round, Swiggy will be valued at $5.5 billion.
“We are excited to partner with Swiggy as they enhance their service offerings and daily consumer touchpoints in the rapidly evolving digital economy,” said Munish Verma, Managing Partner, SoftBank Investment Advisors.
He added that SoftBank has successfully supported multiple food delivery platforms globally and sees the value of providing high quality access to consumers.
On the development, Larry Illag, CEO, Prosus Food, said, “Given the reach of our portfolio, Prosus has one of the most comprehensive food delivery ideas globally and Swiggy continues to demonstrate strong execution and globally One of the best operational teams in food delivery.”
Founded in 2014, Swiggy connects consumers with over 1,50,000 restaurant partners and stores in over 500 cities.
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