Swiggy Turns Into A Decacorn With $10.7 Billion Valuation After Latest Funding
With its latest funding of $700 million, food-delivery giant Swiggy has become a decacorn, a term used for companies valued at $10 billion or more.
Food-delivery giant Swiggy has recently become a decacorn, a term used for companies valued at $10 billion or more. Whereas companies valued at $1 billion or more are termed unicorns.
After its recent funding round in which it raised $700 million, led by Invesco, Swiggy¡¯s valuation has almost doubled to $10.7 billion.
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The funding round saw participation from many other investors such as Smile Group, Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF- I, Sixteenth Street Capital, Ghisallo, and Segantii Capital.
Besides these, Swiggy¡¯s existing investors Alpha Wave Global (formerly Falcon Edge Capital), the Qatar Investment Authority, ARK Impact and Prosus also participated in the funding round which turned into a decacorn.
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Food Delivery & Online Grocery Sector Booming
This big investment and subsequent milestone of Swiggy comes at a time when the adoption of food and online grocery is growing by leaps and bounds, and consumer demand for Swiggy¡¯s many services continues to grow.
As per Swiggy CEO and co-founder Sriharsha Majety, ¡°The GMV of our food-delivery business achieved in 40 months took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories.¡±
He further added: ¡°Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners.¡±
Also Read: 90 Founders Amongst 500 US Unicorns Were Born In India
How The Funding Will Be Utilised
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While Swiggy¡¯s food-delivery business has nearly doubled in gross order value (GOV) in the last year 2021, this fundraising is expected to enable the food delivery giant to accelerate growth on the core platform and make meaningful investment grow its quick commerce grocery service Instamart, which remains well-positioned to continue to lead the emerging space and set to reach an annualized gross merchandise value (GMV) run rate of $1 billion in the next three quarters.
Swiggy will also strengthen its investment in the broader ecosystem. The fundraising is expected to give the company enough firepower to take on rivals such as Zomato, Amazon, Flipkart, Dunzo, Licious, etc.
Swiggy¡¯s Recent Expansion
In the past few months, Swiggy has reportedly managed to expand Instamart to 19 cities, whereas Swiggy Genie (Swiggy¡¯s pick-up and drop service), is present in 68 cities. And Swiggy¡¯s meat-delivery service and daily grocery service Supr Daily is present across all major Indian cities.
Moreover, Swiggy also launched Swiggy One, India¡¯s first comprehensive membership programme with benefits across food, groceries, and other on-demand services.
Earlier, the big boost to Swiggy¡¯s valuation was in July 2021, when it had closed a $1.25-billion fundraise, which marked the first investment in the category by SoftBank Vision Fund 2. This resulted in Swiggy¡¯s valuation rising to $5.5 billion from $3.6 billion.
Also Read: Swiggy & Zomato Discounts Set To Come Under Taxman Scrutiny From January 2022
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