The Indian Wire » Startups » Naspers leads $1 billion round in Swiggy, valuing at $3.3 billion

Naspers leads $1 billion round in Swiggy, valuing at $3.3 billion

Swiggy, the online food delivery company, raises $1 billion in Naspers Ltd led mammoth funding round, marking what is by far the biggest ever funding round in the country’s booming food-tech sector.

It is valued at $3.3 billion becoming country’s fifth most valuable startup. Earlier this year, Swiggy entered India’s unicorn club (startups with a valuation of $1 billion or more) at the valuation of $1.3 billion.

Swiggy, run by Bundl Technologies Pvt. Ltd has so far raised $1.26 billion, including the $1 billion Series H round. Existing investors, such as Accel Partners and Bessemer Venture Partners, have received partial or complete exits for their existing stakes, according to two people aware of the discussions. In total, new investors bought nearly $200 million worth of secondary shares from existing shareholders.

“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out among 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,” said Larry Illg, chief executive officer (food and ventures) at Naspers.

“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,” Illg added.

Swiggy plans to use the capital to expand and grow its services. It plans to add better quality food brands, to hire talent, especially in machine learning and engineering roles across mid and senior levels.

It will strengthen its technology backbone and focus on building a next-generation, AI-driven platform for hyperlocal discovery and on-demand delivery.

Sriharsha Majety, Chief Executive Officer (CEO) of Swiggy said, “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. As we add more firepower to our vision of elevating the 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 its last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise value (GMV).

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