Swiggy closes US$1.25 billion funding led by SoftBank Vision Fund 2 and Prosus
Accelerates growth in food delivery and invests in non-food categories; expects the total addressable market for convenience to grow to 500 million users in the next decade.
Bengaluru, July 20, 2021:Swiggy, a leading on-demand delivery platform in India, announces today the closing of a US$1.25 billion fundraise. The funding marks the first investment in the Indian food delivery category by SoftBank Vision Fund 2*, with Swiggy’s long-term investor, Prosus, one of the largest technology investors in the world, and with participation by existing investors, Accel Partners and Wellington Management. In addition, Swiggy welcomed new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac.
This latest fundraise was heavily oversubscribed following strong interest from investors and comes on the back of Swiggy’s rapid recovery from the impacts of Covid-19 and subsequent growth in 2020-21.
With the launch and growth of multiple services in the past year, Swiggy is leading the hyperlocal delivery market in the country. Its instant grocery delivery service, Instamart, is growing rapidly to create the convenience grocery category within India’s massive grocery delivery segment. Swiggy has also expanded its pick-up and drop service, Swiggy Genie, to 65 cities and deepened the presence of its meat delivery service in key markets. Supr Daily, Swiggy’s daily grocery delivery service, present across major Indian cities, is reaching new users every month.
This investment will further accelerate Swiggy’s multi-year strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond. To support this, Swiggy will enhance its capabilities in technology and AI, and strengthen teams across Engineering, Product, Data Science and Analytics as well as in business and supply chain for its newer initiatives.
‘The participation of some of the most visionary global investors is a huge vote of confidence in Swiggy’s mission and ability to build an enduring and iconic company out of India. The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category. Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span, especially in the past 15 months of the pandemic,’ said Sriharsha Majety, CEO, Swiggy.
‘I believe 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 500 million users. I am confident that we will continue to achieve new growth milestones while holding the responsibility to build a vibrant ecosystem for millions of consumers, as well as our restaurant and delivery partners,’ he added.
Munish Varma, Managing Partner, SoftBank Investment Advisers,said: ‘SoftBank has successfully backed multiple food delivery platforms globally and seen the value of providing high quality convenience to consumers. Swiggy’s focus on evolving the consumer experience, and its emphasis on relationships with its delivery partners and restaurants, have made it a household brand in India. We are excited to partner with Swiggy as they increase their service offerings and daily consumer touchpoints in the rapidly developing digital economy.’
Sumer Juneja, Partner, SoftBank Investment Advisers, added: ‘From its early days, I have had the privilege to watch Swiggy execute on their vision to become the leader in the convenience economy. Their focus on consumer delight, product innovation, and ecosystem support has made Swiggy a compelling digital experience in India. They have the railroads in place to empower multiple businesses to reach the new age consumer on a daily basis, and food delivery is just the beginning.’
‘As a long-term investor in Swiggy, we are continually impressed by the solid business that Swiggy has built, standing out amongst others in India. Swiggy has a steadfast commitment to delivering unparalleled service to consumers, fulfilling their needs across a range of services, while striving to be the most desirable platform for restaurants and delivery partners,’ said Larry Illg, CEO, Prosus Food. ‘Prosus has one of the most comprehensive views of food delivery globally given the reach of our portfolio and Swiggy continues to exhibit strong execution and has one of the best operational teams in food delivery globally. We are confident Swiggy is on a path to build one of the most admirable Indian companies, positively affecting the lives of Indian consumers on a daily basis.’
Swiggy’s strong recovery in food delivery is a result of the hard work of the entire ecosystem of restaurant and delivery partners. To relieve some of the stress of the Covid-19 pandemic, Swiggy launched the Jumpstart program supporting over 50,000 restaurants last year. During the second wave in India, it launched Swiggy Suraksha to offer COVID-19 relief and support to its delivery partners and their families. This includes a 24*7 hotline for leads on medical emergencies, access to doctors for partners and their families, income support, free access to vaccination, and enhanced hospitalisation cover for partners and their families if affected by Covid.
Founded in 2014, Swiggy is India’s leading on-demand delivery platform with a vision to elevate the quality of life for the urban consumer by offering unparalleled convenience. It connects consumers to over 150,000 restaurant partners and stores in over 500 cities. Using innovative technology, Swiggy provides a hassle-free, fast and reliable delivery experience. Every order delivered by Swiggy’s dedicated fleet of delivery partners engaged on a principal-to-principal basis, ensures a host of customer-centric features like lightning-fast delivery, no minimum order value, live order tracking, and 24/7 customer support.
*As of the date of this press release, SoftBank Group Corp. has made capital contributions to allow investments by SoftBank Vision Fund 2 (‘SVF 2’) in certain portfolio companies. The information included herein is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy limited partnership interests in any fund, including SVF 2. SVF 2 has yet to have an external close, and any potential third-party investors shall receive additional information related to any SVF 2 investments prior to closing.
Prosus NV published this content on 20 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2021 07:31:05 UTC.