Swiggy Raises $343 Mn In First Tranche Of Series J Funding From Goldman Sachs, Others

Foodtech major Swiggy has raised close to $343 Mn as part of its Series J funding round through a slew of investors. The fundraising is part of the $800 Mn funding round that is expected to value the company at close to $5 Bn. The round was announced internally by Swiggy cofounder and CEO Sriharsha Majety last week. 

As per the company’s Ministry of Corporate Affairs filings which were accessed by Inc42, Bundl Technologies, which operates Swiggy, raised over INR 2576.82 Cr ($342.9 Mn) by allocating 97,495 Series J compulsorily convertible preference shares (CCPS) with a face value of INR 10 per share and a premium of INR 2,64,293 to eight allottees.

Netherlands-based MIH India Food Holdings led the round by investing INR 909.5 Cr, followed by INQ Holding which injected INR 362.5 Cr. Its existing investor Accel invested INR 217.5 Cr, while new investor Goldman Sachs Asia Strategic poured in a further INR 217.5 Cr.   

Here’s the breakdown:

• Alpha Wave Ventures, LP picked up 10,971 shares
• Accel Leaders 3 Holdings (Mauritius) picked up 8,228 shares
• INQ Holding picked up 13,714 shares
• MIH India Food Holdings B.V. picked up 34,413 shares
• Amansa Investments picked up 5,485 shares
• Think India Opportunities Master Fund picked up 8,228 shares
• CGH AMSIA (R.C.S.) Luxembourg picked up 8,228 shares
• Goldman Sachs Asia Strategic picked up 8,228 shares

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.

Last week, we reported regarding the Series F round which is likely to extend to $1 Bn.

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. 

Swiggy Raises Funds, Zomato Prepares For IPO

The fundraising comes at a time when India’s foodtech industry has been showing signs of recovery from the impact of the pandemic. In February this year, Swiggy’s chief rival Zomato, which is looking to go public in the next few months, raised $250 Mn led by Kora management in a pre-IPO funding round, at a valuation of $5.4 Bn. 

Earlier today, Zomato converted into a public limited company from a private company. The development comes ahead of its initial public offering (IPO) which is scheduled for this year. The company passed a special resolution on April 5, 2021, and renamed itself to Zomato Limited effective from April 9.