Swiggy closes US$1.25 Billion funding led by
SoftBank Vision Fund 2 and Prosus
Accelerates growth in food delivery and invests in non-food categories; expects the total addressable market for convenience to grow to 500 million users in the next decade.
Swiggy, a leading on-demand delivery platform in India, announces today
the closing of a US$1.25 Billion fundraise. The funding marks the first
investment in the Indian food delivery
category by SoftBank Vision Fund 2*, with Swiggy’s long-term investor,
Prosus, one of the largest technology investors in the world, and with
participation by existing investors, Accel Partners and Wellington
Management. In addition, Swiggy welcomed new investors
Qatar Investment Authority, Falcon Edge Capital, Amansa Capital,
Goldman Sachs, Think Investments and Carmignac.
This
latest fundraise was heavily oversubscribed following strong interest
from investors, and comes on the back of Swiggy’s rapid recovery from
the impacts of
Covid-19 and subsequent growth in 2020-21.
With
the launch and growth of multiple services in the past year, Swiggy is
leading the hyperlocal delivery market in the country. Its instant
grocery delivery
service, Instamart, is growing rapidly to create the convenience
grocery category within India’s massive grocery delivery segment. Swiggy
has also expanded its pick-up and drop service, Swiggy Genie, to 65
cities and deepened the presence of its meat delivery
service in key markets. Supr Daily, Swiggy’s daily grocery delivery
service, present across major Indian cities, is reaching new users every
month.
This investment will
further accelerate Swiggy’s multi-year strategy of growing its core food
delivery business and building new food and non-food adjacencies in
2021 and beyond. To support this, Swiggy will enhance
its capabilities in technology and AI, and strengthen teams across
Engineering, Product, Data Science and Analytics as well as in business and supply chain for its newer initiatives.
“The participation of
some of the most visionary global investors is a huge vote of confidence
in Swiggy’s mission and ability to build an enduring and iconic company
out of India. The scope of food delivery in
India is massive and over the next few years, we will continue to
invest aggressively into growing this category. Our biggest investments
will be in our non-food businesses that have witnessed tremendous
consumer love and growth in a short span, especially
in the past 15 months of the pandemic,” said Sriharsha Majety, CEO, Swiggy.
“I
believe the next 10-15 years offer a once-in-a-lifetime opportunity for
companies like Swiggy as the Indian middle class expands and our target
segment for
convenience grows to 500 million users. I am confident that we will
continue to achieve new growth milestones while holding the
responsibility to build a vibrant ecosystem for millions of consumers,
as well as our restaurant and delivery partners,”
he added.
Munish Varma, Managing Partner, SoftBank Investment Advisers,
said: “SoftBank has successfully backed multiple food delivery
platforms globally and seen the value of providing high quality
convenience to
consumers. Swiggy’s focus on evolving the consumer experience, and its
emphasis on relationships with its delivery partners and restaurants,
have made it a household brand in India. We are excited to partner with
Swiggy as they increase their service offerings
and daily consumer touchpoints in the rapidly developing digital
economy.” Sumer Juneja, Partner, SoftBank Investment Advisers, added:
“From its early days, I have had the privilege to watch Swiggy
execute on their vision to become the leader in the convenience economy.
Their focus on consumer delight, product innovation, and ecosystem
support has made Swiggy a compelling digital experience
in India. They have the railroads in place to empower multiple
businesses to reach the new age consumer on a daily basis, and food
delivery is just the beginning.”
“As a long-term investor
in Swiggy, we are continually impressed by the solid business that
Swiggy has built, standing out amongst others in India. Swiggy has a
steadfast commitment to delivering unparalleled
service to consumers, fulfilling their needs across a range of
services, while striving to be the most desirable platform for
restaurants and delivery partners,” said
Larry Illg, CEO, Prosus Food. “Prosus has one of the most
comprehensive views of food delivery globally given the reach of our
portfolio and Swiggy continues to exhibit strong execution and has one
of the best operational teams in food delivery globally.
We are confident Swiggy is on a path to build one of the most admirable
Indian companies, positively affecting the lives of Indian consumers on
a daily basis.”
No comments:
Post a Comment