Swiggy has raised about $ 800 million in a new financing round, the Indian food delivery startup told employees on Monday, as it appears after expanding its business in the nation’s quarters to allow the startup to navigate its epidemic. Workforce cut.
In an email to employees, first Reported Digijay Mishra, journalist of The Times of India, Srihari Mazhi, co-founder and CEO of Swiggy, said the startup has sold about 800 from new investors including Falcon Edge Capital, Goldman Sachs, Think Capital, Amanus Capital and Carminek, and existing investors Prosus Ventures. Had raised million dollars. And Excel.
“This fund raising gives us more firepower than planned investments for our current business lines. Given our unaffected ambition, we will continue to seed / use new proposals for the future that may be ready for investment later. In an email obtained by ClearTips, Mezzetti said, “We will now just need to constantly search and execute to build a reputable company outside India.” ”
Magity did not disclose Swiggy’s new valuation, but the new financing round said it was “heavily subscribed given the very positive investor sentiments towards Swiggy.” According to a person familiar with the case, Swiggy was valued at more than $ 4.9 billion in the new round. The startup has so far generated a turnover of approximately $ 2.2 billion.
Swiggy valued last year at $ 157 million to about $ 3.7 billion. The investment is not part of the new phase, a person familiar with the matter told ClearTips.
He said the long-term goal for the startup, which competes with heavily-backed Zomato and new entrant Amazon, is to serve 500 million users over the next 10-15 years, pointing to Chinese food giant Mituan, Which had 500 million transaction users last year and is worth more than $ 100 billion.
“We are coming out of a very difficult phase given to Kovid over the past year and facing a storm, but everything we do from here needs to maximize our chances of succeeding in the long run” Mezzetti wrote.
Last year Swiggy eliminated some jobs – then Zomato – and curtailed its cloud kitchen efforts, as it attempted to stay away during the epidemic, which prompted New Delhi to implement a month-long lockdown. did.
Monday’s reveal comes after Zomato raised $ 910 million in recent months as the Gurgaon-headquartered firm prepares for an IPO this year. The last installment of the investment valued Zomato at $ 5.4 billion. During its fundraising, Zomato said that it was “partially raising money to fight any mischief or price war from our competition in various areas of our business.”
A third player, Amazon, has entered the food delivery market in India in the past year, although its operations are still limited to parts of Bangalore.
At stake is India’s food distribution market, which Bernstein analysts expect to be worth $ 12 billion by 2022, he wrote in a report to customers earlier this year. Bernstein analysts wrote that Zomato currently leads the market with about 50% market share.
“We find that the food-tech industry in India is positioned for continued growth with improvement in unit economics. Take-rates are highest in India at 20-25% and consumer traction is increasing. The market is largely monopolized between Zomato and Swiggy with 80% + share, ”Bank of America analysts wrote in a recent report reviewed by ClearTips.