Food delivery and quick commerce segments are poised to heat up as Swiggy has raised $700 million in a round led by Invesco. New investors including Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital have joined the new round.
Existing investors Alpha Wave Global, Qatar Investment Authority, ARK Impact, and Prosus also participated in the round. While the company didn’t disclose its valuation, Entrackr’s sources assert that it had achieved decacorn status in this round.
Entrackr was first to report about Swiggy’s in talks to raise $600-800 million in a new round at over $10 billion on September 27. The Bengaluru-based company had closed a $1.25 billion round led by SoftBank and Prosus in July last year.
After Byju’s, Swiggy is the only private firm with a decacorn status. Oyo and Dream11 are the third and fourth-highest valued firms with $9.5 billion and $8 billion valuations respectively.
Importantly, Swiggy is the only decacorn in the online food ordering and delivery space at the moment. As per its market cap, Zomato is currently valued at $9.5 billion.
The fresh proceeds would help Swiggy to scale its food delivery and quick commerce businesses. Its grocery delivery unit Swiggy Instamart has been facing intense competition from Zomato-backed BlinkIt, Reliance-backed Dunzo and Mumbai-based soonicorn Zepto.
Over the past few months, the firm has expanded Swiggy Instamart to 19 cities and claims that it would reach an annualised GMV run rate of $1 billion in the next three quarters. The company will also further strengthen its investments in the broader ecosystem, said Swiggy in a press statement.
To beef up its hyper-local logistics play, Swiggy is set to lead a $200 million round in Rapido. Entrackr had exclusively reported this on December 22.
Apart from food and quick service businesses, Swiggy also runs subscription commerce platform SuprDaily and pick and drop service Swiggy Genie. The company had recently capitalized reserves worth Rs 16,310 crore to allot bonus preference shares to around three dozen existing investors. The move was seen to be the first major step towards Swiggy’s potential public listing. Entrackr had exclusively reported this on January 17.