Swiggy raises $700 mn in fresh funding round, valuation zooms to $10.7 bn

Food aggregator Swiggy on Monday announced that it has raised $700 million in new funding round led by Atlanta-headquartered Invesco. The round also saw participation from a host of new investors such as Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I, and more, the company said in a statement. 

With the new fundraise, the Bengaluru-based company has now reached a valuation of $10.7 billion, sources privy to the development confirmed to BusinessToday.in.

This investment comes at a time when the adoption of food and online grocery is accelerating and the consumer demand for Swiggy’s many services continue to grow, it further added. 

The fresh funding round comes six months after the firm raised $1.25 billion at a valuation of $5.5 billion.

With the food delivery business has doubling in gross order value (GOV) in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart, the company said, adding that quick commerce grocery service is set to reach an annualised GMV run rate of $1 billion in the next three quarters.

“The GMV our food delivery business achieved in 40 months, took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers,” said Sriharsha Majety, CEO, Swiggy.

“Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services,” he added.

“As long-term investors, the Invesco Developing Markets fund seeks investment opportunities in the best companies in the world, led by world-class management teams, and that have the potential for long-term structural growth,” said Justin Leverenz, Chief Investment Officer, Invesco Developing Markets Fund. “Our investment in Swiggy represents such an investment.”

In the last few months, Swiggy has expanded Instamart to 19 cities while Swiggy Genie, its pick up and drop service is currently present in 68 cities, while its meat delivery service, and daily grocery service, Supr Daily are present across all major Indian cities. The food aggregator has also launched Swiggy One, its first comprehensive membership program with benefits across food, groceries, and other on-demand services by Swiggy.