Dec 24, 2018
India’s largest food delivery platform Swiggy gets up $1 billion in funding led by existing backer, South African media giant Naspers, besides entry of new investors like China’s Tencent and hedge funds Hillhouse Capital and Wellington Management. The new round will see the valuation of the five-year-old Bengaluru-based startup swell to $3.3 billion, according to sources familiar with the development.
With the current round, Swiggy has seen its valuation swell by close to o 5 times this year. The company was valued at $1.3 billion in June this year and $700 million in February.
Swiggy’s mega funding round, which also saw the participation of existing backers like DST Global, Meituan Dianping and Coatue Management, will give it a significant capital advantage rival over Gurgaon-based rival Zomato. While Swiggy has raised a total of $1.31 billion across three financing rounds in 2018, Zomato has mopped up around $410 million in two rounds.
Swiggy will use the capital to strengthen its team and invest in “its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery; and bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners,
The food delivery company will also expand into new businesses like; enter areas like grocery and online pharma delivery, leveraging its fleet of 1.2 lakh delivery personnel.
Swiggy said it has expanded to 42 additional cities and doubled in gross merchandise value in the last six months. Swiggy first raised capital from Naspers back in April 2017 and since then has led its last three rounds of funding.