Bengaluru-headquartered foodtech major Swiggy has now turned decacorn after raising $700 million in a new financing round at a valuation of $10.7 billion, almost doubling its valuation from the previous round.
Atlanta-based Invesco led the new round to enable Swiggy to accelerate growth on the core platform and make meaningful investments to grow its grocery delivery platform Instamart, the statement said.
The round was also participated by new investors such as Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF-I, Sixteenth Street Capital, Ghisallo, Smile Group, and Segantii Capital.
Existing investors, including Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, along with its long-term investor Prosus also participated in the round. Notably, Swiggy is now India’s only private player in the foodtech space to become a decacorn startup after edtech firm Byju’s.
The development comes at a time when Swiggy along with other delivery startups pushing themselves into the instant grocery delivery space. In 2020, Swiggy had launched its quick grocery delivery service Instamart to deliver grocery and other related products in under 45-minutes. Since then, the platform has witnessed strong growth in its user base. According to Swiggy, In the last year, Instamart has nearly doubled in gross order value (GOV) and is now expecting to cross $1 billion in terms of annualized gross merchandise value (GMV) run rate in the next three quarters.
“The GMV our food delivery business achieved in 40 months, took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers,” said Sriharsha Majety, CEO of Swiggy.
In December 2021, The quick delivery service platform was clocking more than a million orders per week and was operating a network of 150 dark stores across 18 Indian cities, Swiggy said.
“Our goal is to make Swiggy a platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services,” Sriharsha added.
Apart from Swiggy, Other startups such as Zomato-backed BlinkIt (formerly Grofers), Reliance-backed Dunzo, and Mumbai-based soonicorn Zepto are also investing heavily in the instant grocery delivery space. Recently, Bengaluru-based Dunzo had raised $240 million from Reliance Retail and its existing investors.