If Zomato raised $1.25 billion from its initial public offering (IPO) last week, could its rival Swiggy be far behind? It seems no one wants to give an inch to India’s food delivery monopoly.
Catching up with its rival Zomato, India’s largest on-demand delivery platform, Swiggy has raised $1.25 billion or Rs 9375 crore, the same amount raised by Zomato from the IPO that closed on July 16.
The latest fundraiser values a $5.5 billion post-money valuation compared to the six-year-old food delivery startup Zomato’s valuation has risen to $8 billion after the IPO.
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Swiggy’s long-term investor, Prosus, one of the world’s largest technology investors, and SoftBank Vision Fund 2, with participation from existing investors Accel Partners and Wellington Management, is the first investment in the Indian food delivery category.
In addition, Swiggy welcomed new investors Amansa Capital, Carmignac, Falcon Edge Capital, Goldman Sachs, Qatar Investment Authority and Think Investments.
This latest fundraising was heavily oversubscribed, following strong investor interest, and comes on the back of Swiggy’s rapid recovery from the impact of Covid-19 and subsequent growth in 2020-21, Swiggy said in a statement. .
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With the launch and development of several services over the past year, Swiggy is leading the hyperlocal delivery market in the country.
Its instant grocery delivery service, Instamart, is growing rapidly to create a convenient grocery category in India’s vast grocery delivery segment.
Swiggy has expanded its pick-up and drop service, Swiggy Genie, to 65 cities and deepened its meat delivery service presence in key markets.
Swiggy’s daily grocery delivery service Super Daily, which is present in major Indian cities, is reaching new users every month.
This investment will further accelerate Swiggy’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 AI, and strengthen teams in engineering, product, data science and analytics as well as business and supply chain for its new initiatives.
Commenting on the deal, Sriharsha Mazetti, CEO, Swiggy, 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. Food delivery is massive, and over the next few years, we will continue to invest aggressively in growing this category. Our biggest investments will be in our non-food businesses, which have generated tremendous consumer love and growth in a short period of time. Especially in the last 15 months of the pandemic.”
Avendus Capital was the financial advisor to Swiggy on the transaction.
“I believe the next 10-15 years are a once in a lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users. I am confident that we will continue to achieve new growth milestones while taking the responsibility of creating a vibrant ecosystem for millions of consumers as well as our restaurant and delivery partners.”
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