Bengaluru-Based Foodtech startup Swiggy has raised $800 million in the latest Series J round of financing with new investors like Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac, and Goldman Sachs, as per an internal memo sent to employees by the company founder Sriharsha Majety.
As per the reports, this round of funding will take the company’s valuation close to $5 billion from $3.6 billion. In an email to the employees, Majety said that existing investors Prosus and Accel were present in the Series J round funding.
As reported earlier, the company was in talks with new investors for the fund raise. Post funding, the company’s valuation will reach $5 billion. In the round, the participation of Singapore’s GIC and Qatar Investment Authority were also witnessed.
Majety in the email to the employees said, “The fundraising was also very heavily oversubscribed given the very positive investor sentiment towards Swiggy. This fundraise gives us a lot more firepower than the planned investment for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment with new offerings for the future that may be ready for investment later. We will just need to now relentlessly invent and execute over the next few years to build an enduring iconic company out of India.”
The previous funding of Swiggy involves $100 million from Prosus Ventures in February 2018, $210 million from DST Global and Prosus Ventures in June 2018, $ 1billion from Prosus Ventures in 2018, and $156 million again from Prosus Ventures in February-April of 2020. The latest fundraise has given Swiggy a potency to Gurugram-based rival Zomato, which raised the funding of $900 million at a valuation of $5.4 billion in the last two rounds and is planning to launch its IPO in the first half of 2021.
Though, the company witnessed a staggering loss of 160.6 per cent for the financial year (FY) 2019-20 while its revenues saw an increase of 98 per cent from the preceding financial year. Its losses scaled up to ₹ 2,451 crore from ₹ 940 crore in FY19 while its revenues reached Rs 2,485 crore in FY20 from Rs 1,255 crore in FY19.
The mail read, “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 500M (million) users over the period. Even globally, now everyone acknowledges the TAM (total addressable market) for the food delivery category and how it is still very, very early in India.”
By the end of 2018, Swiggy provided its services in fifty cities and then reached the milestone of 100 cities by March 2019. By December 2019, it expanded its operations in 500 cities.
Now, It claims to have its services in 500 cities, with 120k allies and 218 k employees. In 2017, Swiggy introduced Cloud Kitchen and Swiggy Pop. In 2018, it launched Swiggy Super, Swiggy Go, Swiggy Daily and Swiggy Stores. In 2020, Swiggy introduced its “Statement Services” like Swiggy Instamart, Swiggy Genie, and Health Hub.