Swiggy’s funding appetite increases the overall valuation to $5.5 billion

With more on the plate now, one of the leading food delivery firms, Swiggy, has recently announced concluding its $1.25 billion funding round headed by SoftBank Vision Fund 2 and Prosus

Swiggy has recently declared closing down its recent $1.25 billion funding round led by Prosus and SoftBank Vision Fund 2, just to raise its overall valuation to $5.5 billion. The financing includes a first tranche of $800 million infused by a gamut of investors, and a fresh capital of $450 million investment made by SoftBank Vision fund 2.

It would be essential to note that through this novel funding, SoftBank is looking forward to debuting its first investment in the Indian food delivery space. In addition to this, the funding round was also backed by Swiggy’s current investors including Wellington Management, and Accel Partner, along with a slew of new investors, Falcon Edge Capital, Qatar Investment Authority, Goldman Sachs, and others.

It has been reported that a chunk of the new capital would be used for expanding the company’s core food delivery business, while the major portion would be deployed to build nonfood verticals like grocery in 2021 and beyond. This will potentially entail heavy investments in boosting AI capabilities, technology, and employing skilled talent.

Speaking on the latest accomplishment, Sriharsha Majety, CEO of Swiggy cited that the firm’s biggest investments are likely to include non-food businesses that have observed significant love of consumers in a short span, especially in the past 15 months of the Covid-19 pandemic.

Majety added that the company is further looking forward to acquiring a once in a lifetime opportunity like this, as the Indian middle class population is expanding profusely.

The coronavirus pandemic has had an impeccable impact on the overall food delivery business in the Indian subcontinent. This expansion has indeed enhanced the investor appetite for the space, resulting in hefty investments in the marketplace.

For the record, analysts at Kotak Institutional Equities predict the online food delivery industry GMV to surge to $9 billion in FY25, with further escalation to $27 billion by FY30.

Source Credit: https://www.financialexpress.com/industry/sme/more-on-the-plate-new-raise-puts-swiggy-valuation-at-5-5-billion/2294502/