INDIA – Online food delivery platform Swiggy has raised US$800 million in an oversubscribed funding round led by Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs.
Existing backers, Prosus Ventures (formerly Naspers), its largest shareholder, and venture fund Accel participated in the funding round which also saw participation from new investors such as the Qatar Investment Authority and GIC of Singapore.
According to a report by ET Retail, the new round pegs Swiggy’s valuation at US$5 billion and is coming at a time when food delivery platforms are facing a new threat to their survival following re-introduction of lockdowns and curfews in Mumbai and Delhi.
The government decree that declared food delivery as an essential service is however expected to give players such as Swiggy and Zomato a lifeline.
Swiggy closed its previous funding round at a valuation of around US$3.7 billion, when it raised US$158 million led by its largest backer, South Africa’s Prosus Ventures, in February 2020.
Commenting on the deal, Swiggy CEO and Founder Sriharsha Majety said: “The fundraise gives us a lot more firepower than the planned investments for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investments later.”
“Over the last one year, thanks to all your efforts, we’ve managed to drive a strong recovery in the food delivery business with a very clear path to profitability,” Majety said.
“The food delivery business is the strongest it has ever been, and we are now well on our way to drive continued growth over the next decade.”
Swiggy’s fundraise comes at a time when chief rival Zomato is expected to go public in the next few months.
The food-delivery and restaurant discovery app raised US$500 million in a pre-IPO round, through a mix of primary and secondary capital, which valued it around US$5.5 billion.
The company is likely to raise around US$750 million- US$1 billion through an IPO later this year, valuing the firm at US US$6-8 billion.
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