In recent news, Swiggy has raised 700 million dollars in new funding led by Invesco. This comes as good news for the food delivery giant as the valuation got doubled to 10.7 billion dollars.
The valuation of Swiggy has now become double that of Zomato before when it launched its Initial Public Offering. At the time when Zomato launched its IPO its valuation was at 5.4 billion dollars.
The investment round observed participation from Sumeru Venture, Baron Capital Group, Kotak, Axis Growth Avenues AIF-I, IIFL AMC Late Stage Tech Fund, Ghisallo, Sixteenth Street Capital, Smile Group and Segantii Capital.
Swiggy’s existing investors Alpha Wave Global (formerly Falcon Edge Capital), the Qatar Investment Authority, and ARK Impact, along with its long-term investor Prosus, also participated in the round.
The current evaluation of Swiggy has become greater than OYO whose valuation is 9 billion dollars. In 2020, the value of OYO dropped to 8 billion dollars from 10 billion dollars.
The investment comes at a very good time when there is growing interest in market for food and grocery delivery apps. Swiggy has showed good growth and has secured loyal base of customers in the market.
The funds will help Swiggy to accelerate its growth and it will also provide leg room for growth of Instamart. Instamart was launched last year in light of growing demands of grocery. It promises to deliver groceries to customers in 20-30 mins. It has received great response from the customers and shows promising growth.
CEO and Co-founder, Sriharsha Majesty said, “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.”
He also said. “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.”
Swiggy Instamart is currently operating in 19 cities. Swiggy Genie, a pick and drop service is available in 68 cities across India.