BENGALURU: India’s online food delivery market is flush with cash right now with a leading player, Swiggy, having raised $1.25 billion (Rs 9,375 crore) in a Series J ( late stage funding) round led by SofBank’s Vision Fund 2 and one of its long-term investors, Prosus Ventures. The announcement comes two days after Swiggy’s biggest rival, Zomato closed its Rs 9,375-crore Initial public offering (IPO) at an $8.7 billion valuation, which was highly oversubscribed by both the retail and institutional investors.
Swiggy’s post money valuation during the current financing round stood at $5.5 billion. Existing investors, including Accel Partners and Wellington Management, also participated in the round, the Bengaluru-headquartered firm said in a statement.
“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. 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,” said Sriharsha Majety, chief executive of Swiggy, in a statement.
This also marks Japanese tech investment giant SoftBank’s first bet on food tech industry of India. Sources said that SoftBank may have poured in $450 million in Swiggy. SoftBank’s Vision Fund 2 has invested in a series of start-ups since the onset of pandemic last year which includes Unacademy, Flipkart, Meesho.
“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,” said Sumer Juneja, Partner at SoftBank Investment Advisers, in a statement.