In a new funding round led by Atlanta-based Invesco, Swiggy raised $700 million in a new funding round. The round saw participation from a number of new investors, including Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF-I, and more, according to a statement from the company.
Sources close to the development confirmed to BusinessToday.in that the Bengaluru-based company has now reached a valuation of $10.7 billion with the new fundraise.
This investment comes at a time when the adoption of food and online grocery is accelerating and consumer demand for Swiggy's services continues to grow, it further added.
The firm raised $1.25 billion in a six month period, a new funding round comes six months after it had a valuation of $5.5 billion.
The food delivery business has doubling in gross order value GOV in the last year, which will allow Swiggy to accelerate growth on the core platform and make meaningful investments to grow Instamart, the company said, adding that quick commerce grocery service will reach an annualized GMV run rate of $1 billion in the next three quarters.
In the last month, Instamart took 17 months to demonstrate the platform benefits of Swiggy, as a result of the GMV's food delivery business. Swiggy, CEO, Sriharsha Majety, said that they will double down on this in order to build more categories in line with our mission of providing unparalleled convenience to Indian consumers.
Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. As long-term investors, the Invesco Developing Markets fund seeks investment opportunities in the best companies in the world, led by world-class management teams, and has the potential for long-term structural growth, said Justin Leverenz, Chief Investment Officer, Invesco Developing Markets Fund. Our investment in Swiggy is an investment. Swiggy has expanded Instamart to 19 cities in the last few months, while Swiggy Genie, its pick up and drop service is currently present in 68 cities, while its meat delivery service, and daily grocery service, Supr Daily are present in all major Indian cities. Swiggy One, Swiggy's first comprehensive membership program with benefits across food, groceries, and other on-demand services, was launched by the food aggregation.