Swiggy raises $1.25 bn from Softbank, Prosus

BENGALURU: Swiggy said it has raised $1.25 billion from investors, including Softbank and Prosus, nearly matching the funds raised by rival Zomato in an initial public offering (IPO), as the two companies battle to dominate India’s food delivery market.

The fundraising announced on Tuesday valued Swiggy at $5.5 billion, an increase of more than 50% from the $3.6 billion it was valued in April last year, a person familiar with the development said, requesting anonymity.

Existing investors, including Accel Partners and Wellington Management, took part in the fundraising. New investors in the round include Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac.

Swiggy’s chief rival Zomato saw its ₹9,375 crore IPO subscribed around 40 times, indicating investor enthusiasm to back the moneylosing food delivery startup. The share sale valued Zomato at $8 billion. Other companies that recently completed fundraisings include Flipkart, which raised a record $3.6 billion last week.

“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 growth in a short span,” said Sriharsha Majety, co-founder and chief executive of Swiggy. Earlier this month, the Competition Commission of India (CCI) approved Softbank’s $450 million investment into Swiggy’s parent Bundl Technologies.