Swiggy, one of the biggest names in the Indian food delivery market, recently closed their series K investment round with a massive $700 million. This is just 6 months after the brand had raised $1.25 billion in its last investment round. Now, Swiggy is valued at $10.7 billion, which is almost double their 2021 valuation of $5.5 billion.
Some of the existing investors who again participated in this round include Prosus Ventures, Qatar Investment Authority, Alpha Wave Global, and ARK Impact; and the round also saw new investors such as Baron Capital Group, Kotak, Sumeru Venture, Axis Growth, IIFL AMC Late Stake Tech Fund, Sixteenth Street Capital, Ghisallo, Smile Group, and Segantii Capital. Invesco led the series K investment round for Swiggy.
The brand has been aggressively pursuing new territories since the last year. While the pandemic situation gave a massive boost to their food delivery service, their primary target now is to push the ‘Instamart’, their grocery delivery service. Swiggy has clearly outdone their food delivery rivals in India, Zomato, but has stiff competition in the grocery delivery market. However, Swiggy officials stated that the Instamart GMV should hit $1 billion within the next year.
Two of the main competitors that they have to deal with now are Zepto and BlinkIt, the latter backed by Zomato. Swiggy already operates its food delivery services in over 500 cities, and will now use the raised funds to introduce Instamart across these cities. The Indian food services market is growing exponentially and is expected to hit a $97 billion valuation by 2026.
The co-founder of Swiggy stated that they aim to reach a cap of 100 million consumers across India who will use the platform 15 times a month on average.