Foreign investors pile $1.25bn into Indian delivery startup Swiggy
Indian food delivery startup Swiggy has rallied $1.25bn in its latest fundraiser, as foreign investors pile into the country’s exploding tech-based startup scene.
The latest funding round, led by Japanese SoftBank’s Vision Fund 2 and tech investor Prosus, has driven Swiggy’s valuation to hit an eyewatering $5.5bn, according to TechCrunch.
The US’ Goldman Sachs and Qatar Investment Authority also injected cash into the capital rally.
It comes as Indian food delivery rival Zomato, backed by China’s Ant Group as well as SoftBank’s venture capitalist fund, racked up bids worth $46.3bn in an initial public offering (IPO).
Zomato’s IPO was oversubscribed more than 38 times, as investors place their bets on India’s delivery market growth – which also hosts SoftBank’s delivery heavyweight Flipkart.
Swiggy raised $800m in April earlier this year, according to local media, which its CEO said will be used to invest in food delivery.
As the latest wave of Covid-19 hit India, both Swiggy and Zomato reported a rise in delivery orders.
“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,” Swiggy CEO Sriharsha Majety said.