Swiggy, an Indian food delivery startup Swiggy announced on Tuesday that it raised $1.25 billion in its latest funding round. The round was led by existing investor Prosus and SoftBank’s Vision Fund 2. Softbank invested $450 million in Swiggy and this, alongside other investments gives the food delivery startup a post-money valuation of $5.5 billion.
Founded in 2013 as an e-commerce website called Bundl by Nandan Reddy and Sriharsha Majety, it was rebranded into food delivery startup Swiggy in 2014. It is India’s biggest online food ordering and delivery platform. It is based in Bangalore, India, and was operating in 100 Indian cities as of March 2019. Swiggy expanded into general product deliveries under the name Swiggy Stores in early 2019.
Years ago, India’s food delivery space was an unexplored space, and companies Foodpanda and Tinyowl (that were later acquired by Ola cabs and Zomato) who were brave enough to invest in the market were struggling. With time, the market grew and the prospects became better. The food delivery space became viable and garnered investors.
“The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission and ability to build an enduring and iconic company out of India. 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,” Sriharsha Majety, chief executive officer at Swiggy, mentioned.
Just like other startups in India, Swiggy was hit by the pandemic. The company revealed that its expansion into grocery delivery and launching its pick-and-drop service has recorded huge success. It mentioned that the amount and value of orders that it is processing is now 30 percent higher than the volume before coronavirus struck.
“Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span, especially in the past 15 months of the pandemic. I believe the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users”, Sriharsha Majety added.
Swiggy’s latest round had notable investors. Apart from Prosus and SoftBank’s Vision Fund 2, other notable investors that were a part of the round include Goldman Sachs and Qatar Investment Authority.
Sumer Juneja, Partner at SoftBank Investment Advisers, in a statement said that “from its early days, I have had the privilege to watch Swiggy execute on their vision to become the leader in the convenience economy. Their focus on consumer delight, product innovation, and ecosystem support has made Swiggy a compelling digital experience in India. They have the railroads in place to empower multiple businesses to reach the new age consumer on a daily basis, and food delivery is just the beginning.”