fbpx

Type to search

India’s Swiggy Raises a Further $700m, Value Now Tops $10bn

Food delivery firm Swiggy doubled its valuation to $10.7 billion in its latest funding round led by Invesco, as competition intensifies in India’s delivery sector


Competition in India's food delivery sector is hotting up. Screengrab via YouTube, Dec 2018.

 

SoftBank-backed Swiggy doubled its valuation to $10.7 billion in its latest funding round, two people familiar with the matter said, as booming demand for quick delivery of food and grocery in India drives up investments in the sector.

The food-delivery firm said on Monday it raised $700 million in a funding round led by US investment firm Invesco, which also  included Baron Capital Group, Sumeru Venture, IIFL and Kotak. Existing investors Alpha Wave Global and Qatar Investment Authority also took part in the round.

Demand for delivery of food and groceries has accelerated in Asia’s third-largest economy since the onset of the Covid-19 pandemic, prompting companies to expand their operations in the race to dominate the sector.

Swiggy had raised $1.25 billion in a SoftBank-led fundraising in July, which valued it at $5.5 billion.

“While the food delivery business has nearly doubled in gross order value in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart,” it said on Monday.

Swiggy said its grocery delivery service Instamart is on track to reach an annualised gross merchandise value run rate of $1 billion in the next three quarters.

Instamart competes with Tata-owned BigBasket and Blinkit, formerly known as Grofers, which Swiggy’s rival Zomato holds a stake in, as well as Amazon.com’s Amazon Fresh and Reliance Industries’ JioMart.

Earlier this month, Reliance Industries’ retail arm invested $200 million for a 25.8% stake in online delivery platform Dunzo.

 

• Reuters with additional editing by Jim Pollard

This report was updated on January 24, 2022 with new information.

 

ALSO SEE:

Indian Grocery Delivery Startups Race Sparks Road Safety Fears

Frenzied Appetite for India Food Delivery Giant Zomato’s IPO

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond