Swiggy raises $1 billion in fresh funds

Last Updated 20 December 2018, 10:54 IST

Swiggy, a food delivery platform, on Thursday, said it has executed definitive agreements for a $1 billion Series H round of funding led by existing investor, Naspers.

The round includes participation from DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management Company.

Swiggy’s latest fundraising round is the single largest in India’s food technology sector to date. Swiggy’s growth along with an investor pool that comprises some of the largest global investors reflects the company’s market leadership as it continues to unlock the tremendous potential in Indian food delivery.

Commenting on the new fundraising, Swiggy CEO Sriharsha Majety said the company 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 the 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," said Majety.

Naspers Food and Ventures CEO Larry Illg said Naspers first partnered with Swiggy in April 2017 because it recognised the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India.

"Now, nearly two years later, we have even more confidence that Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has achieved 10x growth in the number of orders per month since our first investment, has expanded throughout India to Tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Illg.

“Our latest round of capital will help to accelerate Swiggy’s journey towards its vision of providing unmatched convenience in food ordering and delivery for Indian consumers," adds Illg.

Swiggy, owned by Bundl Technologies Private Limited, will use the funds 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. Through Access, Swiggy brings a variety of food to consumers by enabling plug-and-play expansion for restaurant partners in different areas.

Additionally, Swiggy will use the capital to hire talent, especially for machine learning and engineering roles across mid and senior levels. The company will further strengthen its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.

Since the last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise.

Inclusive of the latest round, Swiggy has raised a total of $1.26 billion.

(Published 20 December 2018, 09:12 IST)

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