With the new round of funding, Swiggy also see entry of new investors like China’s Tencent and hedge funds Hillhouse Capital and Wellington Management.
Bengaluru based food delivery platform Swiggy has raised $1 billion in funding led by existing backer, Naspers.
With the new round of funding, Swiggy also see entry of new investors like China’s Tencent and hedge funds Hillhouse Capital and Wellington Management. The new round will see the valuation of the food delivery platform reach to $3.3 billion, said a report on ET.
Swiggy was valued at $1.3 billion earlier this June and $700 million in February.
Swiggy’s mega funding round, which also saw the participation of existing backers like DST Global, Meituan Dianping and Coatue Management, will give it a significant capital advantage rival over Gurgaon-based rival Zomato. While Swiggy has raised a total of $1.31 billion across three financing rounds in 2018, Zomato has received around $410 million in two rounds.
“Swiggy 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,” said the company in a statement, adding that it will also use the capital to strengthen its team and invest in “its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.”
“Swiggy 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,” shared Sriharsha Majety, CEO, Swiggy.
Besides further pushing into the food delivery business, Swiggy will also use the corpus raised to expand into new businesses. The food delivery startup has made its entry to over 42 additional cities and doubled in gross merchandise value in the last six months.
“Swiggy has 10x 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 Larry Illg, CEO, Food and Ventures, Naspers.
Avendus Capital was the financial advisor to the transaction.