Food delivery platform Swiggy has raised $1.25 billion in the latest round of funding which saw participation from marquee investors like SoftBank Vision Fund 2 and Prosus. The investment marks the first time SoftBank Vision Fund 2 has picked up a stake in an Indian food delivery company. The fundraise comes on the heels of its fierce rival Zomato raising Rs 9,375 crore through an Initial Public Offering (IPO).
The latest capital infusion takes Swiggy’s valuation to $5.5 billion, according to a report by Moneycontrol. The proceeds from the infusion would be utilized by the food company to make investments in its core food delivery business. However, a major chunk of the capital would be used to expand its non-food entities like the grocery service Instamart and pick up and drop facility Swiggy Genie.
It will also “enhance its capabilities in technology and Al, and strengthen teams across Engineering, Product, Data Science and Analytics as well as in business and supply chain for its newer initiatives,” the company said in a press release.
The fundraise round saw participation from Swiggy’s existing investors like Prosus, Accel Partners, and Wellington Management. New investors who picked up stakes in the company are- Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments, and Carmignac.
“This investment will further accelerate Swiggy’s multi-year strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond,” the release read.
Swiggy’s co-founder and CEO Sriharsha Majety said, “The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category.” He added that the company’s biggest investments would be made in the non-food segment that has increased witnessed consumer support and growth during the past 15 months of the pandemic.