Swiggy, an Indian on-demand food delivery platform, has recently secured over $800 million in a new funding round with an aim to drive business in the country quarters amid rising COVID-19 challenges. This new fundraising is led by investors such as Carmignac, Amansa Capital, Think Capital, Goldman Sachs, and Falcon Edge Capital, along with participation from existing investors namely Accel and Prosus Ventures. The company has raised over $2.2 billion in funding to date.
According to Sriharsha Majety, Swiggy’s Co-founder & Chief Executive, the recent fundraising round will help enhance its current business lines and continuously invent & execute new offerings for the customers. He did not reveal the new valuation of the company. The company has been gradually recovering from the massive impacts of the pandemic and is apparently planning to boost its services for the long term.
People with knowledge of the matter, however, have disclosed that the new funding round valued the food delivery company at nearly $4.9 billion. Through this round, the company will also target towards gaining a competitive edge over other heavily-backed rivals such as Zomato as well as Amazon by expanding its user base to 500 million over the next 10 to 15 years.
In response to the coronavirus crisis and lockdown, Swiggy had eliminated some employees in 2020, in a bid to stay afloat in the market. The company’s latest funding round happened along the heels of Zomato raising $910 million as it prepares for an initial public offering (IPO) in 2021. This tranche of investment has valued the rival company at $5.4 billion. It is reportedly holding the largest share in the food delivery market with around 50% share.
As per authentic reports, the food-tech industry in the region is well-positioned to sustain growth owing to the improving unit economics. Moreover, the food delivery sector has reportedly been maintaining robust growth and is further set to ensure continued growth in the next decade.