Online food delivery platform Swiggy has secured around $800 million (about Rs 5,863 crore) in a new funding round with Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs joining as new investors, media reports said citing an email sent by company’s co-founder Sriharsha Majety to employees. Existing investors Prosus Ventures and Accel also participated in this round.
The latest capital infusion exercise will take the company’s valuation close to $5 billion from $3.6 billion. The fundraising was heavily oversubscribed given the positive investor sentiment towards Swiggy, Majety said in the email sent on Monday.
“Over the last one year, thanks to all your efforts, we’ve managed to drive a strong recovery in the food delivery business with a very clear path to profitability,” Majety said.
“This fundraise gives us a lot more firepower than the planned investment for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investment later,” he told the employees.
“We will just need to now relentlessly invent and execute over the next few years to build an enduring iconic company out of India”.
Swiggy’s fundraise comes at a time when chief rival Zomato is expected to go public in the next few months. Zomato, which pocketed 100 million (Rs 760 crore) from US-based investment firm Tiger Global Management LLC in September last year. In February last year, Swiggy raised Rs 805 crore (about $112.6 million) in a round of funding led by South African technology conglomerate Naspers.
The internal memo further read that the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy “as the Indian middle class expands and our target segment for convenience grows to 500M (million) users over the period”.
“Even globally now everyone acknowledges the TAM (total addressable market) for the food delivery category and how it is still very very early in India,” Majety said.