It made SoftBank several years, but the Japanese financing being is now ready to bet on India’s food delivery market. Swiggy said on Tuesday it has closed a $1.25 billion financing round led by SoftBank Vision Fund 2 and Prosus Ventures.
The new financing round, a Series J, includes the $ 800 million speculation the Bangalore-based startup had disclosed to employees earlier this year.( SoftBank alone devoted $450 million in the new round .) The new round, which Swiggy says was “heavily oversubscribed, ” applies the six-year-old food delivery startup a post-money valuation of $5.5 billion.
TechCrunch first reported about Swiggy’s engagement with SoftBank and the proposed valuation of $5.5 billion in mid-April. Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac and existing investors Accel Collaborator and Wellington Management too participated in the new round.
Swiggy said the brand-new financing round shows the turnaround it has demonstrated in the past few one-quarters. Like many other startups, Swiggy was severely hit with the pandemic. The startup said its recent bet to expand into grocery delivery, and pick-up and lower busines has paid off. The significance of orders it is processing now is 30% higher than those in the pre-Covid era, it said.
Swiggy’s achievement this year, per Prosus Ventures. pic.twitter.com/ AqcKYQ8ml 1
— Manish Singh (@ refsrc) December 23, 2020
“The participation of some of the most visionary world investors is a huge vote of confidence in Swiggy’s mission and ability to build an enduring and iconic busines out of India. The scope of food bringing in India is massive and over the next few years, we will continue to invest aggressively into growing this category, ” said Sriharsha Majety, chief executive of Swiggy, in a statement.
“Our biggest assets is in accordance with our non-food enterprises that have witnessed huge consumer affection and rise in a short span, especially in the past 15 months of the pandemic. I accept the next 10 -1 5 years offer a once-in-a-lifetime opportunity for business like Swiggy as the Indian middle class expands and our target segment for appliance stretches to 500 million users.”
The new speculation comes at a time when Indian startups are fostering record fund and a handful of grown-up conglomerates are beginning to explore the public business. Zomato, Swiggy’s chief rival in India, raised $ 1.3 billion in its initial public offering last week and financial services startups Paytm and MobiKwik have also registered for their initial public offerings.
At stake is India’s food delivery market, which commentators at Bernstein expect to balloon to be worth $12 billion by 2022, they wrote in a report to purchasers earlier this year.
A third participate, Amazon, too entered the food delivery market in India last year, though its operations are still limited to parts of Bangalore. At a virtual consultation ahead of the IPO last week, Zomato execs dismissed Amazon as a serious competitor for now. “There’s no major impact on market share from Amazon so far, ” the company’s chief financial officer said.
For SoftBank, a regular fixture of the Indian startup ecosystem, this is the first time it has bet on a meat give actor. The Japanese corporation has backed Indian startups in variou categories including e-commerce( Flipkart, Snapdeal, Meesho, Lenskart, Firstcry ), ride-hailing( Uber and Ola ), and edtech( Unacademy ). SoftBank invests in various meat bringing startups globally including DoorDash and Uber Eats. Prosus Ventures, an early investor in Swiggy, has also backed several meat transmission startups globally.
” From its early days, I have had the privilege to watch Swiggy execute on their vision to become the master in the amenity economy. Their focus on consumer satisfied, product innovation, and ecosystem aid has performed Swiggy a fascinating digital ordeal in India. They have the railroads in place to empower variou businesses to reach the new age consumer on a daily basis, and food delivery is just the beginning, ” said Sumer Juneja, Partner at SoftBank Investment Advisers, in a statement.
Swiggy said it will deploy the fresh funds to accelerate its “multi-year strategy” of growing its core nutrient delivery business and building new nutrient and non-food adjacencies this year and beyond.
Further reading: Swiggy begins aviators on an #OrderDirect produce( The CapTable ).
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