Swiggy, an online food delivery platform based in Bangalore, India, has recently raised $800 million in funds from existing and new investors.
The fresh round of funding brings the value of India’s largest food delivery company to $5 billion.
The funding round was participated by global asset manager Falcon Edge Capital, Singapore-based fund management firm Amansa Capital, US-based private investment firm Think Capital, French asset management firm Carmignac and banking giant Goldman Sachs.
Other new investors included sovereign wealth fund investors Qatar Investment Authority and GIC of Singapore while existing investors Prosus and Accel were also part of the funding round.
Swiggy Chief Executive Officer Sriharsha Majety, in an internal mail to employees on Monday, said the fundraise was heavily oversubscribed given the positive investor sentiment towards Swiggy and the strong recovery of the delivery sector during the pandemic.
The Bangalore-based company also raised about $156 million in two tranches last year while their valuation has raised significantly in the past two years when it was last valued at $3.6 billion in 2018.
“This fundraiser gives us a lot more firepower than the planned investments for our current business lines. Given our unfiltered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investment later,” Majety said.
Majety said the company is at a stage where it is ‘strongest it has ever been’ and well on its way towards profitability.
“The next 10-15 years offer 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 over this period,” the publication quoted him as saying.
The recent announcement comes after Amazon India announced last month that it is expanding Amazon Food, its delivery service across 62 pin-codes in Bangalore.
Another bigger rival Zomato also recently raised $250 million from Tiger Global, valuing the firm around $5.4 billion. Zomato is also planning to file the draft prospectus by this month for its initial public offering, local media Business Today reported.
The latest round of funding will give Swiggy extra firepower to its planned investments for its current business lines.
“Given our unfettered ambition, we will continue to experiment new offerings for the future that may be ready for investment later,” he said, adding that the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and its target segments grow to 500 million users.