Swiggy on Thursday said it has received $1-billion funding from technology investor Naspers and a clutch of other funds in what is considered the single largest investment in the domestic food delivery service industry.
In June, Swiggy raised $210 million from the same investors, taking the total investment to $1.26 billion and its valuation to about $3.3 billion. The latest Series H round was led by existing investors, Naspers and DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management Company.
About 80 per cent of the $1-billion funding from Naspers and others will be fresh funds.
According to capital markets and investment group CLSA, the Indian food delivery market is valued at $6 billion and is expected to grow to about $30 billion by 2022.
Another report from internet-focussed advisory firm Redseer Consulting said food tech is among the fastest growing internet industries in the country. It has seen an overall GMV (gross merchandise value) growth of around 140 per cent last year, with the number of orders increasing by 176 per cent. There are about 15 million food tech users in the country.
The new round of funding comes a day after the Johannesburg-listed Naspers, which has previously invested in Indian start-ups such as Flipkart, OLX and PayU, led a $540-million funding involving online educational portal Byju’s.
“We first partnered with Swiggy in April 2017 because we recogniszed the Swiggy team had built a sustainable, long-term business that stood out. 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. ” said Larry Illg, CEO, Food and Ventures, Naspers, in a statement.
The Bengaluru-based food delivery company said it 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.
Talent hunt
Additionally, Swiggy will use the capital to hire top-notch 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 the next-generation AI-driven platform for hyperlocal discovery and on-demand delivery. “ We’re pleased that visionary global investors share our purpose and have made such a significant investment in our future,” Sriharsha Majety, CEO, Swiggy, said.
Swiggy, founded in 2014, enables users to access more than 50,000 restaurants in 50 cities. It has an army of 1.2 lakh “delivery partner” couriers to deliver orders to customers.
Swiggy’s nearest rival Zomato has far raised $410 million.