Indian food delivery giant Swiggy raised $700 million and doubled its valuation to $10.7 billion, Reuters reported on Monday (Jan. 24), citing unnamed sources with insider information.
Backed by Softbank, Swiggy is just behind Zomato in the booming sector of fast delivery of food and groceries in India. Swiggy previously raised $1.25 billion in July, which gave it a valuation of $5.5 billion. Zomato went public in a $1.3 billion initial public offering (IPO) earlier this month.
Swiggy’s latest infusion of capital was led by U.S. investment firm Invesco with participation by new backers Baron Capital Group, Sumeru Venture, IIFL and Kotak. Existing investors Alpha Wave Global and Qatar Investment Authority also took part.
See also: India’s Swiggy in Talks to Raise $800M From Investors
The third-biggest economy in Asia, India has experienced a huge uptick in demand for food and grocery delivery, initially fueled by the Covid-19 pandemic.
Swiggy’s grocery delivery service Instamart is forecast to have an annualized gross merchandise value run rate of $1 billion across the upcoming three quarters, per the report.
“While the food delivery business has nearly doubled in gross order value in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart,” the company said.
Read more: Swiggy Grows Instamart Express Grocery With $700M in Capital
Instamart faces rivals BigBasket as well as Zomato-backed Blinkit, Amazon Fresh and Reliance’s JioMart. Reliance’s retail arm-backed delivery startup Dunzo with $200 million in exchanges for a 25.8% stake.
Headquartered in Bangalore, Karnataka, India, Swiggy services 18 cities. Instamart, a central feature on the main Swiggy app, enables users to have groceries delivered within 15 to 30 minutes. The company is striving to hit the 15-minute mark for deliveries as its standard.
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