BENGALURU: Food delivery giant Swiggy on Monday raised USD 700 million in new funding led by Invesco. With this funding, Swiggy has become a decacorn as valuation crossed over USD 10.7 billion. Start-ups that exceed USD 10 billion valuation are called decacorns.
New investors such as Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I and Sixteenth Street Capital, among others, participated in the round. Apart from Swiggy, edtech giant Byju's is the most valuable start-up with USD 21 billion.
The investment comes at a time when the adoption of food and online grocery is accelerating and the consumer demand for Swiggy's services continue to grow. Also, Swiggy is raising this fund six months after getting USD 1.25 billion funding.
This funding will help Swiggy take on its rivals Zomato, Flipkart, Dunzo and Amazon. Also, this fund raising comes on the same day when Zomato's shares plummeted over 19 per cent on Monday, and the company is now valued at about USD 9.72 billion, less than Swiggy.
While the food delivery business has nearly doubled in gross order value in the last year, this fundraise will enable Swiggy to accelerate growth on the core platform and make investments to grow Instamart.
In December last year, Swiggy invested USD 700 million in Instamart, which will reach an annualised GMV run rate of USD 1 billion in the next three quarters. The company will also further strengthen its investments in the broader ecosystem.
"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 consumers," said CEO Sriharsha Majety.