Swiggy Increases $1 billion in largest funding Around till date.
Bengaluru: Swiggy, that entered India's unicorn club before this year, has raised $1 billion in fresh capital from new and existing investors such as Naspers Ltd and Tencent Holdings Ltd, signaling what's undoubtedly the biggest ever funding round in the nation's booming food-tech industry. With this, Swiggy has been the fifth most precious startup in the country, controlling a valuation of $3.3 billion, underscoring the stunning increase for a firm that was started four decades ago.
Of the $1 billion, $800 million will be initial capital or new funds.
Existing investors, such as Accel Partners and Bessemer Venture Partners, have obtained partial or complete exits for their existing bets, based on two people conscious of the talks. In total, fresh investors bought almost $200 million value of secondary shares from existing shareholders.
In June, a $210 million funding around made Swiggy a unicorn (startups with a valuation of $1 billion or more).
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"We partnered with Swiggy in April 2017 since we recognized the Swiggy staff had assembled a sustainable, long-term company, which stood out among others in India. Now, almost two decades later, we have even more confidence Swiggy has the winning formula and will continue to build a major business in the nation," said Larry Illg, chief executive officer (food and ventures) in Naspers.
"Swiggy has 10x the number of orders each month since our first investment, has expanded throughout India to Tier 1, 2 and three cities, and above all, is your most adored food delivery manufacturer in India, providing the best support to consumers nationally," Illg additional.
Swiggy intends to utilize the funds to add more quality food brands and address gaps in its supply through delivery-only kitchens under its access' initiative for restaurant partners.
It will strengthen its technology back and concentrate on building a next-generation, AI-driven platform for hyperlocal discovery and on-demand delivery. Additionally, it plans to use the capital to hire talent, especially in machine learning and technology roles across senior and mid levels.
Since its last funding around six months past, Swiggy has expanded to 42 additional cities and dropped in gross product value (GMV).
"Swiggy continues to be in the forefront of bettering the potential of Indian food shipping using its industry-changing innovations and concentrate on providing the best consumer experience to countless Indians. As we add more firepower to our vision of bettering quality of life for urban customers by providing unparalleled convenience, we're pleased that visionary worldwide investors share our goal and have made such a substantial investment in our future," explained Sriharsha Majety, chief executive director of Swiggy.
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