GURGAON/BENGALURU: Swiggy has raised $800 million from a set of new investors including Falcon Edge, Goldman Sachs, Amansa Capital, Think Investments, and Carmignac, according to an internal email sent by company co-founder and CEO Sriharsha Majety.
The online food delivery major is now valued at $5 billion, post this investment, according to a person aware of the matter.
In the note, reviewed by TOI, Majety said Swiggy’s existing investor Prosus Ventures (previously Naspers) and Accel Partners have also participated in the latest financing round, which was “heavily oversubscribed”.
The fund-raise gives Swiggy more firepower to fight Gurgaon-based rival Zomato, which has also raised more than $900 million in the last two rounds and is aiming to launch an IPO later this year. Amazon has also entered the space recently and is scaling up operations in Bengaluru.
“We will now need to relentlessly invent and execute over the next few years to build an enduring company out of India,” Majety’s note said.
“The food delivery business is the strongest it’s ever been, and we are now well on our way to drive continued growth over the next decade. In addition, some of our new bets like Instamart are showing amazing promise while we’ve also made strides in setting up some of our adjacencies for liftoff very soon,” he added.
Over the next 10-15 years, the company is aiming to serve 500 million Indians as the middle class consumer base expands. Both Swiggy and Zomato have previously said that they have recovered from the lows of the pandemic. Both platforms are now clocking a higher volume of sales than a year ago.
“We have managed to drive a strong recovery in the food delivery business with a very clear path to profitability,” Majety said.
A Swiggy spokesperson declined to comment on Majety’s mail to the team.
Rohan Agarwal, director at Redseer, a market research firm, said the online food delivery sector has been showing signs of recovery since December last year when the number of orders with food aggregators touched pre-Covid-19 levels.
“The food delivery business is one of the fastest sectors in terms of growth. Even though the online food delivery business was hit last year after the pandemic, it recovered soon,” said Agarwal. He estimates the industry to be almost $13 billion in size by 2025.
“The Indian market is still behind the US and China and hence there is a lot of scope for growth in the coming year especially in the smaller towns,” said Agarwal.