Bengaluru-based foodtech major Swiggy has closed a $1.25 Bn round of funding led by SoftBank Vision Fund 2 and Prosus, the company said on July 20 (Tuesday). The latest round also attracted new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac, and existing investors Accel Partners and Wellington Management.
This Series J round has been closed at a valuation of $5.5 Bn, a company source who did not want to be named, told Inc42.
This comes after the announcement of a $343 Mn funding round in April this year that aimed to raise $800 Mn at a valuation of $5 Bn. However, amid the encouraging reception of the Zomato IPO, Swiggy’s fundraise gathered more momentum and overshot that target by $450 Mn.
“The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission and ability to build an enduring and iconic company out of India. The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category. Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span, especially in the past 15 months of the pandemic,” said Sriharsha Majety, CEO, Swiggy.
The company said that this investment will further accelerate Swiggy’s strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond. To support this, Swiggy will enhance its capabilities in technology and AI, and strengthen teams across Engineering, Product, Data Science and Analytics as well as in business and supply chain for its newer initiatives.
Swiggy had earlier raised close to $158 Mn, as part of its Series I round in April last year, which saw participation from Prosus NV, Tencent, Meituan Dianping, Ark Impact, Korea Investment Partners, amongst others.
With a substantial hit to its operations between April and May in 2020, the company has been looking to boost its revenue by revamping Swiggy SUPER, its subscription service. It also diversified its offerings with the expansion of Swiggy Genie in mid-2020, which aims to take on Dunzo in the door-to-door courier and parcel delivery service market.