Swiggy CEO Sriharsha Majety. Only Paytm, Ola, Oyo and Byju’s are more valuable than Swiggy in India’s startup space. Photo: Mint
Bengaluru: Swiggy, which entered India’s unicorn club earlier this year, has raised $1 billion in fresh capital from existing and new investors such as Naspers Ltd and Tencent Holdings Ltd, marking what is by far the biggest ever funding round in the country’s booming food-tech sector. With this, Swiggy has become the fifth most valuable startup in the country, commanding a valuation of $3.3 billion, underscoring the stunning rise for a firm that was started four years ago.
Of the $1 billion, $800 million will be primary capital or fresh funds.
Swiggy, run by Bundl Technologies Pvt. Ltd, has so far raised $1.26 billion, including the $1 billion Series H round. Existing investors, such as Accel Partners and Bessemer Venture Partners, have received partial or complete exits for their existing stakes, according to two people aware of the discussions. In total, new investors bought nearly $200 million worth of secondary shares from existing shareholders.
In June, a $210 million funding round made Swiggy a unicorn (startups with a valuation of $1 billion or more). Only Paytm (One97 Communications Pvt. Ltd), Ola (ANI Technologies Pvt. Ltd), Oyo (Oravel Stays Pvt. Ltd) and Byju’s (Think and Learn Pvt. Ltd) are now ahead of Swiggy in valuation. It competes with Zomato, UberEats and Ola’s Foodpanda.
“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out among others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country,” said Larry Illg, chief executive officer (food and ventures) at Naspers.
“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,” Illg added.
Swiggy plans to use the funding 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 backbone and focus on building a next-generation, AI-driven platform for hyperlocal discovery and on-demand delivery. It also plans to use the capital to hire talent, especially in machine learning and engineering roles across mid and senior levels.
Since its last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise value (GMV).
“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. As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share our purpose and have made such a significant investment in our future,” said Sriharsha Majety, chief executive officer of Swiggy.
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