Swiggy raises 9,357 cr after Zomato's bumper IPO

Bengaluru: After its rival Zomato witnessed a mega IPO last week, Swiggy on Tuesday announced the closing of a $1.25 billion (over Rs 9,357 crore) fundraise led by SoftBank Vision Funds 2 and its long-term investor Prosus, one of the largest technology investors in the world.

The food delivery platform said that the fresh investment will further accelerate its multi-year strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond, as it expects the total addressable market for convenience to grow to 500 million users in the next decade. Swiggy said it will enhance its capabilities in technology and artificial intelligence (AI), and strengthen teams across engineering, product, data science and analytics as well as in business and supply chain for its newer initiatives.

"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. The Swiggy funding marks the first investment in the Indian food delivery category by SoftBank Vision Fund 2, with participation by existing investors, Accel Partners and Wellington Management.