Indian food delivery giant Swiggy raises $700 million at $10.7 billion valuation

Swiggy, India’s prime meals supply startup, has raised $700 million in a brand new financing spherical, simply six months after securing $1.25 billion, because it aggressively expands its choices together with the instant-delivery service within the South Asian market.

Invesco led the Bengaluru-headquartered startup’s Sequence Okay spherical, which in line with a supply conversant in the matter values the seven year-old startup at $10.7 billion. Swiggy was valued at $5.5 billion in July final yr. At $10.7 billion valuation, Swiggy has surpassed the valuation of Zomato, which went public final yr and presently has a market cap below $10 billion.

New buyers Baron Capital Group, Sumeru Enterprise, IIFL AMC Late Stake Tech Fund, Kotak, Axis Development, Sixteenth Road Capital, Ghisallo, Smile Group, Segantii Capital in addition to present backers together with Prosus Ventures, Alpha Wave International, Qatar Funding Authority, and ARK Influence additionally invested within the new spherical.

TechCrunch reported in late September that Invesco was in talks to guide an funding of over $500 million in Swiggy.

The brand new funding follows a powerful yr of progress during which Swiggy almost doubled its gross order worth, the startup stated. Instamart, Swiggy’s on the spot supply service is “set to achieve” an annual GMV run fee of $1 billion within the subsequent three quarters, the startup stated.

Instamart has turn into one of many main focus areas for Swiggy previously yr and a half. The startup stated final yr that it plans to take a position $700 million to scale Instamart’s choices and attain.

“As long-term buyers, the Invesco Growing Markets fund seeks funding alternatives in one of the best firms on this planet, led by world-class administration groups, and which have the potential for long-term structural progress,” stated Justin Leverenz, Chief Funding Officer at Invesco Growing Markets Fund, stated in an announcement. “Our funding in Swiggy represents such an funding.”

Sriharsha Majety, co-founder and chief govt of Swiggy, stated Instamart has reached a GMV in simply 17 months what it took the core meals supply enterprise 40 months to ship.

“Our objective is to make Swiggy the platform that 100 million customers can use 15 instances a month. We’ll proceed to put money into our folks, merchandise, and companions to create a optimistic affect on the ecosystem and speed up the digital transformation in meals and grocery supply and different on-demand providers,” he added.

At stake is India’s meals providers market, which is predicted to achieve $97 billion by March of 2026, analysts at Bernstein wrote in a report back to shoppers final yr. “India meals providers market is giant and anticipated to achieve $97 billion by FY25. Organized meals service is rising sooner and anticipated to achieve 55% market share by FY25. We count on on-line penetration to broaden to twenty% by FY25 and market measurement to achieve $20 billion rising at 46% CAGR. Vital a part of the expansion will likely be pushed by new buyer acquisition and penetration into smaller markets. Zomato had 10 million month-to-month transacting customers (MTU) in FY20, anticipated to extend 5x by FY25 to ~50 million,” they wrote.

Amazon additionally entered the meals supply house in India final yr, however, as a Zomato govt talked about in a public discussion board final yr, the corporate has but to make inroads on this class. Amazon’s meals supply service is presently solely obtainable in Bangalore.