Food delivery platform Swiggy has raised $1Bn in its Series H round funding led by existing investor Naspers, marking on the largest financing support in the Indian food-tech sector till date.
Swiggy will deploy the newly raised funds to onboard quality food brands, address the gaps in supply and hire new talent across mid and senior levels with expertise in machine learning and engineering roles.
Apart from Nasper, the round also saw participation from new investors Tencent, Hillhouse Capital and Wellington Management, along with other existing investors DST Global, Meituan Dianping and Coatue Management.
“Our latest round of capital will help to accelerate Swiggy’s journey towards its vision of providing unmatched convenience in food ordering and delivery for Indian consumers,” said Larry Illg, CEO, Food and Ventures, Naspers.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy is one of the fastest-scaling unicorns in the country. With the current round, the total funding raised by Swiggy in 2018 has reached $1.31 Bn whereas its valuation mark 5-time increase to $3.3 Bn this year.
Earlier this year, the four-year-old Bengaluru-based startup had raised two rounds of funding; a $100 Mn (INR 699 Cr) led by Naspers and Meituan-Dianping in February and $210 Mn (INR 1,468 Cr) led by Naspers and DST Global in June.
After the last funding round in June, Swiggy has expanded its services to 42 cities in the country and doubled in gross merchandise value. It has over 50,000 restaurant partners and 1.2 lakh delivery agents who deliver food orders to customers in over 50 cities in the country.
According to capital markets and investment group CLSA, the Indian food delivery market is valued at $6 billion and is expected to grow to about $30 billion by 2022. While Swiggy and Zomato have the largest market share, other major startups such as UberEats, FreshMenu and Foodpanda India, acquired by Ola are operating in this sector.