Gain for Swiggy
SoftBank-backed food delivery company Swiggy has said that it raised $700 million in a funding round led by US investment firm Invesco, as competition intensifies for quick delivery of food and grocery in India.
Baron Capital Group, Sumeru Venture, IIFL and Kotak were among the new investors who participated in the latest funding round. Swiggy’s existing investors who took part in the round included Alpha Wave Global and Qatar Investment Authority.
“While the food delivery business has nearly doubled in gross order value (GOV) in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart,” Swiggy said in a statement.
Swiggy’s grocery delivery service Instamart is on track to reach an annualised gross merchandise value run rate of $1 billion in the next three quarters, a media report said.
Tata-owned BigBasket, Grofers, Amazon.com Inc’s Amazon Fresh and Reliance Industries’ JioMart are the competitors of Instamart. Swiggy’s major rival Zomato Ltd holds a stake in Grofers.
Swiggy is expected to follow Zomato with an initial public offering about a year or so later. The company has seen its valuation almost double since it was valued at $5.5 billion in April last year. The new cash will be used to strengthen its grocery delivery business.