Swiggy raises $800 million at $5 billion valuation, ready to take on rival Zomato.& |  Photo Credit: BCCL
New Delhi: Online food delivery major Swiggy has raised $800 million (about Rs 5,826 crore) from a set of new investors including Falcon Edge, Goldman Sachs, Amansa Capital, Think Investments, and Carmignac, as per an internal mail sent by company founder Sriharsha Majety to employees. The Bengaluru-based food aggregator is now valued at $5 billion after this investment.
The latest fundraise gives Swiggy the much-needed firepower to take on Gurugram-based rival Zomato, which has also raised more than $900 million at a valuation of $5.4 billion in the last two rounds and aims to launch its IPO around June 2021.
Citing sources familiar with the matter, ET reported that sovereign wealth funds Qatar Investment Authority and GIC of Singapore are also part of the financing round. Existing investors, venture fund Accel and Prosus Ventures (formerly Naspers), its largest shareholder, also participated in the funding.
“Over the last one year, thanks to all your efforts, we’ve managed to drive a strong recovery in the food delivery business with a very clear path to profitability. The food delivery business is the strongest it has ever been, and we are now well on our way to drive continued growth over the next decade,” according to the financial daily, which cited Majety’s mail sent to employees. Majety further mentioned that the fundraise was oversubscribed due to its strong recovery following the disruptions caused by the Covid-19 pandemic.
In February 2020, the online food startup closed its previous funding round at a valuation of about $3.7 billion, when it raised $158 million led by its largest investor Prosus Ventures.
“The fundraise gives us a lot more firepower than the planned investments for our current business lines. Given our unfettered ambition though, we will continue to seed/ experiment new offerings for the future that may be ready for investments later,” said Majety.
Separately, ToI quoted Rohan Agarwal, director at market research firm RedSeer, as saying, “The food delivery business is one of the fastest sectors in terms of growth. Even though the online food delivery business was hit last year after the pandemic, it recovered soon.”