Swiggy scoops up $700m in latest round

Indian food delivery giant Swiggy has raised US$700 million in a round led by Invesco, with participation from Baron Capital Group, Alpha Wave Global, and Prosus, among others.

The round would value the company at around US$10.5 billion, according to reports.

Photo credit: Swiggy

The startup said the raise comes following its food delivery business doubling in gross order value in the last year. It plans to use the new capital to grow its core platform and further invest in Instamart, its quick commerce offering.

Instamart is set to reach an annualized gross merchandise value (GMV) run rate of US$1 billion in the next three quarters, the company added. It has recently expanded Instamart’s reach to 19 cities in India within the last few months.

Sriharsha Majety, CEO of Swiggy, said that it took just 17 months for Instamart to hit the same GMV its core food delivery biz achieved in 40 months. “We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers,” he added.

The company also launched Swiggy One, which it says is India’s first comprehensive membership program with benefits across food, groceries, and other on-demand services offered by Swiggy.

“With multiple growth catalysts in place to drive its continued expansion, Swiggy is well-positioned for 2022 and beyond,” the company wrote in a statement.

In 2021, it was reported that Swiggy was eyeing a financial debut later this year. The listing is expected to occur around a year after the IPO of its archrival Zomato.

See also: 8 takeaways from Zomato’s investor deck for its $1.3b IPO

Other investors in the round include:

• Sumeru Ventures
• IIFL AMC Late Stage Tech Fund
• Kotak
• Axis Growth Avenues AIF – I
• Sixteenth Street Capital
• Ghisallo
• Smile Group
• Segantii Capital
• Qatar Investment Authority
• Ark Impact