Online food delivery platform Swiggy has raised $800 million from investors led by Falcon Edge, Amansa Capital, Think Investments, Carmignac, and Goldman Sachs, the company’s co-founder said in an internal email to employees. The deal pegs Swiggy’s valuation at $5 billion, sources said. Sovereign wealth funds Qatar Investment Authority and GIC of Singapore new investors to Swiggy’s cap table are also part of the financing round, sources in the know said. Existing backers, Prosus Ventures, its largest shareholder, and venture fund Accel also participated in the funding round, they said.
The fundraise was oversubscribed due to the strong recovery following pandemic-induced disruption, Sriharsha 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. “The food delivery business is the strongest it has ever been, and we are now well on our way to drive continued growth over the next decade.” Swiggy closed its previous funding round at a valuation of around $3.7 billion when it raised $158 million led by its largest backer, South Africa’s Prosus Ventures, in February 2020.
Drawing a parallel with Meituan, the Chinese online to offline local life service platform that had 500 million users transacting on food delivery in the last year, Majety said he was optimistic that Swiggy could be an enduring iconic company with 500 million users over the next 10-15 years. Swiggy’s fundraiser comes at a time when chief rival Zomato is expected to go public in the next few months.