Food delivery app Swiggy has raised $1.25 billion in a financing round led by SoftBank Vision Fund 2, with Swiggy’s long-term investor Prosus. As the platform has started to recover from Covid19 impact, the latest fundraising round was heavily oversubscribed following strong interest from investors, the company stated. Existing investors such as Accel Partners and Wellington Management too participated in the round. In addition, new investors such as Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac joined the latest fundraising.
The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission, Sriharsha Majety, CEO, Swiggy, said. He also highlighted that the scope of food delivery in India is massive. “Over the next few years, we will continue to invest aggressively into growing this category. 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,” he stated.
Majety is of the belief that the next 10-15 years offer matchless opportunity for companies like Swiggy as the Indian middle class expands and the target segment for convenience grows to 500 million users.
Along with its traditional food delivery business, Swiggy has also expanded its pick-up and drop service, strengthened grocery delivery service. This investment will further accelerate Swiggy’s multi-year strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond, the company said.
“SoftBank has successfully backed multiple food delivery platforms globally and seen the value of providing high quality convenience to consumers. Swiggy’s focus on evolving the consumer experience, and its emphasis on relationships with its delivery partners and restaurants, have made it a household brand in India. We are excited to partner with Swiggy as they increase their service offerings and daily consumer touchpoints in the rapidly developing digital economy,” Munish Varma, managing partner, SoftBank Investment Advisers said.
As a long-term investor in Swiggy, Prosus Food is continually impressed by the solid business that Swiggy has built, Larry Illg, CEO, Prosus Food, said. “Prosus has one of the most comprehensive views of food delivery globally given the reach of our portfolio and Swiggy continues to exhibit strong execution and has one of the best operational teams in food delivery globally. We are confident Swiggy is on a path to build one of the most admirable Indian companies, positively affecting the lives of Indian consumers on a daily basis,” Illg added.