India’s food tech space is getting it’s biggest capital infusion till date. And its Swiggy which has raised this time. The company, which had easily evolved into one of the largest in business in India’s foodtech space, has gobbled up a massive $1 Billion. This fresh Series H round was led by existing investor Naspers.
The funding round also includes participation from several existing investors including DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital, and Wellington Management Company.
This fundraising round is the single largest in India’s food technology sector to date. The newly raised capital will be used by the company to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners.
Additionally, Swiggy will use the capital to hire talent, especially for machine learning and engineering roles across mid and senior levels. It will also strengthen its technology and focus on building next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.
Sriharsha Majety, CEO, Swiggy said:
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.
With this funding, Swiggy has now become the fifth most valuable startup in the country, with a valuation of $3.3 billion and underscoring the rise of a venture launched four years ago.
The company’s valuation surged around five times in less than a year. Swiggy was valued at roughly $700 million when it raised $100 million in February this year from South Africa’s Naspers and others.
Swiggy’s massive fundraise puts more pressure on its rival Zomato which has so far raised more than $400 million and was last valued at $1.1 billion. Zomato however has continued to grow as a stable and sustainable business, drive by runaway success of its premium membership scheme, Zomato Gold.