In the single largest financing round in the Indian food-tech segment, Swiggy, has raised $1 billion in its Series H round of funding led by existing investor Naspers, a global internet and entertainment group. The round includes participation from several existing investors including DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management Company.
The latest funding round gives India’s largest food delivery platform valuation of $3.3 billion. With this round, the Bengaluru-headquartered startup has raised a total of $1.26 billion.
Swiggy will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners, the company said in a statement. Additionally, Swiggy will use the capital to hire talent, especially for machine learning and engineering roles across mid and senior levels. The company will further strengthen its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.
“Swiggy has been at the forefront of elevating the potential of Indian food delivery with its industry-changing innovations and focus on delivering the best consumer experience to millions of Indians,” said Sriharsha Majety, chief executive, Swiggy. “As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share our purpose and have made such a significant investment in our future.”
Since the last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise value as it strengthened its leading market share along with industry-best repeat rates and net promoter score. Swiggy’s expansion follows a conscious effort to grow in a sustainable manner, ensuring unmatched consumer experience, unprecedented demand for its restaurant partners and sustainable earnings for close to 120,000 active delivery partners.
“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Larry Illg, chief executive, Food and Ventures, Naspers.
Earlier this week, Byju’s, the creator of the popular K-12 learning app, said it raised $540 million in its latest round of investment led by Naspers. Canada Pension Plan Investment Board (CPPIB) also participated in the round.