Just six months after securing $1.25 billion in funding, Swiggy, India’s leading food delivery firm, has raised $700 million in a new round of funding as it rapidly expands its services, including the instant-delivery service in the South Asian market.
According to a source with knowledge of the situation, Invesco led the startup’s Series K round, which valued the seven-year-old business at $10.7 billion. The startup has its headquarters in Bengaluru. In July of last year, Swiggy was given a $5.5 billion valuation.
With a valuation of $10.7 billion, Swiggy has outperformed its 13-year-old main rival Zomato, whose market cap has dropped to less than $10 billion since it went public last year.
Invesco was reportedly in discussions to spearhead a $500 million investment in Swiggy, Crunch reported in late September. The additional funding follows a successful year of growth for Swiggy, during which the startup almost doubled the gross order value of its meal delivery business.
According to the startup, Instamart, Swiggy’s rapid delivery service, will generate $1 billion in GMV annually within the next three quarters.
The business, which has offices in more than 500 Indian cities, announced last year that it would invest $700 million to expand the scope and range of its services. The quick delivery industry, which has gained popularity in a number of areas, is escalating rivalry in India as well.
Zepto, a 10-minute delivery service with its headquarters in Mumbai, received $100 million in funding late last year from Y Combinator Continuity Fund.
Blinkit, which is funded by Zomato and was originally known as Grofers and is backed by SoftBank, along with Swiggy, made the switch to instant delivery last year.
Sriharsha Majety, co-founder and CEO of Swiggy, claims that Instamart has achieved a GMV that took the primary food delivery industry 40 months to achieve.” Their objective is to enable 15 times per month usage of Swiggy by 100 million users”.
The market for food services in India, which is projected to reach $97 billion by March 2026, is in peril, according to a study sent to clients by Bernstein analysts last year.
The industry for food services in India is sizable and is projected to grow to $97 billion by FY25. By FY25, organized food service would hold a 55 percent market share due to its rapid growth. By FY25, they project that 20% of people will be using the internet, and the market will be worth $20 billion, rising at a rate of 46% CAGR as per singhtechcrunch.
Gaining new clients and expanding into smaller markets will be key drivers of the expansion. In FY20, Zomato had 10 million monthly transactional users (MTU), and they anticipated a 5x increase to 50 million users by FY25.
Although third-party supplier Amazon has just entered the Indian meal delivery business, the American e-commerce company has not yet made progress in this area, as a Zomato representative pointed out in a public discussion last year.
About Indian Food Delivery Company Swiggy
Swiggy is one of the leading companies in the global online food ordering and delivery market. People felt as though everything was perfect because of its quick delivery.
People used to go to restaurants in offline mode and wait for the food to be prepared for 45 minutes or more before receiving a piece of the meal, which was like a sour pill. Instead, Swiggy did a fantastic job.
All food enthusiasts are fortunate to be able to eat the food they love at their favorite restaurant, within 30 minutes, and even at their doorstep. Yes, it functions well and smoothly.
People prefer to receive delicious food at their location, which is why Swiggy’s delivery times are unmatched in a short amount of time. Not only that, but it also creates a joyful board for both restaurant and driving partners. You could say that we are enjoying the best of both worlds.
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Faq’s
Sriharsha Majety, Nandan Reddy, Rahul Jaimini.
July 2014
$700 M
$10.7 B
Bengaluru
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