Swiggy Enters Decacorn Club! Raises $700 Mn Funding Led By Invesco

Food delivery giant Swiggy is the new entrant to the decacorn club after raising $700 Mn in a fresh round of funding led by Invesco. The round also saw participation from new investors including Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I among others. 

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 round helped Swiggy’s valuation soar between $10 Bn and $11 Bn. Swiggy will utilise the fresh capital to further accelerate growth on the core platform and make meaningful investments to grow its quick delivery business – Instamart. Swiggy will further strengthen its investments in the broader ecosystem.

With this investment, Swiggy joins the likes of BYJU’s, and publicly listed companies such as Paytm, Nykaa, among others who have above $10 Bn valuation. 

The fresh investment also comes six months after it has raised $1.25 Bn led by SoftBank Vision Fund 2 and Prosus in participation with Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac. And from existing investors Accel Partners and Wellington Management too. The round had then helped Swiggy’s valuation touch $5.5 Bn, as per Inc42 sources.

The development also comes a week after Swiggy had issued around 163 Mn bonus shares to its 30 shareholders. 

Board of directors of Swiggy had approved the issuance of 16,31,05,600 bonus CCPS in a ratio of 1:1400 to its shareholders. This means, for every one equity share, 1400 bonus CCPS have been allotted by Swiggy. 

The said bonus CCPS can be converted into equity shares either in 1:1 ratio, 1: 1.6 ratio, or 1: 0.8 ratio depending upon the investors and the company. 

Swiggy is allotting the bonus shares at a face value of INR 1,000, meaning the total value of bonus shares is pegged at INR 16,310 Cr.

The move seems to be in lines with Swiggy going for a public listing before the end of the year.

In December, Swiggy had announced that it will be pumping in $700 Mn in its growing business – Instamart. Swiggy through its Instamart seems to capture as much market share of the quick-delivery segment while competing against Zomato-backed Blinkit, Reliance-backed Dunzo, and Mumbai-based Zepto. 

In the quick-commerce segment, two 19-years-old Stanford dropout’s new venture Zepto has raised $160 Mn from YCombinator’s Continuity fund, Nexus, Global Founders, among others, 

Next in the queue comes Reliance leading $240 Mn worth of funding in Bengaluru-based Dunzo. Earlier last year, publicly listed Zomato had infused $100 Mn in Blinkit (earlier known as Grofers). 

Swiggy said Instamart remains well-positioned to continue to lead the emerging quick commerce grocery space and is set to reach an annualised GMV run rate of $1 Bn in the next three quarters.

As per a RedSeer report, the quick commerce market in India is expected to reach $5 Bn by 2025 from the current $0.3 Bn.

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