BENGALURU: Swiggy, a SoftBank-backed Indian food delivery service, announced on Monday (Jan 24) that it has raised US$700 million in a funding round headed by Invesco, a US investment firm, as competition for fast food and grocery delivery in Asia’s third-largest economy heats up.
The newest investment round included new investors such as Baron Capital Group, Sumeru Venture, IIFL, and Kotak. Alpha Wave Global and Qatar Investment Authority were among Swiggy’s existing investors who participated in the round.
“While the food delivery business’s gross order value (GOV) has nearly doubled in the previous year,” Swiggy said in a statement. “This funding will help Swiggy to further accelerate growth on the core platform and make major investments to grow Instamart.”
Swiggy said its Instamart grocery delivery business is on target to hit a $1 billion annualised gross merchandise value run rate in the next three quarters.
Tata-owned BigBasket, Grofers, Amazon.com Inc’s Amazon Fresh, and Reliance Industries’ JioMart compete with Instamart. Swiggy’s larger rival Zomato Ltd owns a share in Grofers.
Reliance Industries’ retail arm purchased US$200 million in online delivery platform Dunzo earlier this month for a 25.8% stake.
Source: Reuters
