Swiggy Raises $800 Million As It Prepares For Post-Covid Demand
Swiggy has raised $800 million in its fresh round of funding at $5 billion valuation as the online food ordering and delivery startup prepares itself for its next phase growth after Covid-led disruption.
Fresh round was led by Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac and Goldman Sachs, according to an internal note written by Sriharsha Majety, co-founder of Bengaluru-based company, to employees. BloombergQuint has reviewed the note. Existing investors such as Prosus and Accel too participated in the fresh fundraise.
“Over the last year, thanks to all your efforts, we have managed to drive a strong recovery in the food delivery business with a clear path to recovery,” Majety said in the note. “The food delivery business is the strongest it has ever been, and we are now well on our way to drive continues growth over the next decade.”
The latest investment comes a little over a month after its biggest rival Zomato 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, Bloomberg reported.
BloombergQuint awaits Swiggy's response to emailed queries.
Majety said in the note that fresh fundraise will give them a lot more firepower than the 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 grows to 500 million users.
Swiggy had raised $158 million last year in a round that valued the firm at around $3.7 billion.
(Corrects an earlier version that misstated the funding amount.)