Online food delivery startup Swiggy has raised $1 billion in a fresh round of funding led by South African multinational internet and media group Naspers, with the entry of new investors like China’s Tencent, Hillhouse Capital, and Wellington Management.
Avendus Capital was the financial advisor to the transaction.
According to sources, with this new round of funding the Bangalore based startup will value at $3.3 billion. In February this year the company was valued at $700 million, so the firm has seen its valuation rise by close to 5 times this year.
This the third round of funding happening this year for Swiggy and it saw the participation of existing investors like DST Global, Meituan Dianping and Coatue Management.
“Swiggy will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners,” said the company in a statement, adding that it will also use the capital to strengthen its team and invest in “its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.”
“Swiggy has been at the forefront of elevating the potential of Indian food delivery with its industry-changing innovations and focus on delivering the best consumer experience to millions of Indians,” said Sriharsha Majety, CEO, Swiggy.
“Since the last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise value,” the company release said.
The company now has over 50,000 restaurants listed on its platform across more than 50 cities.
Swiggy first raised capital from Naspers back in April 2017 and since then the firm has led its last three rounds of funding.
“Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Larry Illg, CEO, Food and Ventures, Naspers.
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