With the current round, the Bengaluru-based firm has almost doubled its valuation from its previous fundraise to $10.7 billion, two people aware of the contours of the deal confirmed to ET.
ET was the
first to report about Invesco leading Swiggy’s financing round on September 28, last year. We had also said that the company’s valuation jump was a re-rating exercise for the firm, presently valued at $5.5 billion, on the back of Zomato’s bumper listing in July. However, Zomato’s stock has been slipping amid a larger dip in the Indian markets.
The fresh funds come after Swiggy had
raised $1.25 billion from SoftBank, Accel and existing investors Prosus, among others in April last year.
“The GMV (gross merchandise value) 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, co-founder and chief executive, Swiggy.
Last month in an interview with ET, Majety had said that the
company is committing $700 million to push its ultra-fast delivery business- Instamart.
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ETtechThe 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, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital.
Swiggy’s existing investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, along with its long-term investor Prosus also participated in the round.
The fundraise comes at a time when Swiggy is making in-roads in the much-contested instant grocery delivery space with its Instamart service. In December 2021, the company had earmarked $700 million in investments for its instant grocery delivery service.
The company is now expecting Instamart’s annualised gross merchandise value (GMV) run rate to cross $1 billion in the next three quarters, it said on Monday.
In December 2021, Instamart was clocking more than a million orders per week and was operating a network of 150 dark stores across 18 Indian cities.
Swiggy now claims to operate its Instamart platform in 19 cities, at present. It also offers 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 key metros in India.
Swiggy’s quick commerce vertical faces serious competition from Zomato-backed Blinkit (previously Grofers), six-month-old rival, Zepto, as well as Ola which also has started pilots for its instant grocery service in Bengaluru and Mumbai.
Earlier, ET had also reported that
Blinkit was likely to receive $500 million of capital from Zomato, which operates 200 dark stores and is planning to add another 100 in the coming months.
