Swiggy raises funding worth $1.2 billion led by SoftBank and Prosus
Swiggy, the Bengaluru-based food delivery platform has raised $1.25 billion in funding from Soft Bank Vision Fund II along with existing investors Prosus (formerly known as Naspers), Accel, and Wellington Management. This is the largest funding for an online food delivery platform since it was launched in 2014. The company’s current value now stands at $55 billion.
The investment funding in the company was made in two phases that began earlier this year. $800 million came in the first phase from new investors like Falcon Edge Capital, Qatar Investment Authority, Amansa Capital and Goldman Sachs. The second phase was of $450 million that brought in funds from Soft Bank Vision Fund, reportedly around April 15. Japanese conglomerate Soft Bank’s investment in Swiggy was recently cleared by the Competition Commission of India (CCI).
Soft Bank has also invested in US food delivery startup DoorDash. Uber’s food delivery business UberEats backed by Soft Bank has already shown a notable rise in the US market.
Swiggy has launched Instamart, an instant grocery delivery service, to create its grocery convenience category in the major segment in India. For this Swiggy is set to enhance its technology and AI capabilities, and strengthen its teams across sectors.
Munish Varma, managing partner at SoftBank Investment Advisers said, “SoftBank has successfully backed multiple food delivery platforms globally and seen the value of providing high-quality convenience in consumers. Swiggy’s focus on evolving the consumer experience, and its emphasis on relationships with its delivery partners and restaurants, have made it a household brand in India. We are excited to partner with Swiggy as they increase their service offerings and daily consumer touchpoints in the rapidly developing digital economy.”
Currently, Swiggy has more than 5000 employees with a network of over 2 lakh delivery executives. It also has partnership with 1.2 lakh restaurants catering to 500 cities across India.