Indian based online food delivery service provider, Swiggy said on Thursday (20) that it has raised $1 billion in its latest funding led by South African internet firm Naspers Ltd.
Naspers, a global internet and entertainment group and one of the largest technology investors in the world, announced that it has executed definitive agreements to lead a $1bn Series H round in Swiggy, Naspers said in a statement.
Swiggy India’s food delivery platform located in India’s Southern city, Bengaluru, is valued at a little over $3bn after the current funding round, media reports said.
The current funding round includes participation from several existing investors including DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management.
Naspers’ substantial investment in Swiggy, as well as its recent investment in BYJU’S leading a $540mn funding round, demonstrates the company’s commitment to India across multiple sectors.
Indian online consumers will be a significant driver of online growth in the world.
In addition to food and education, Naspers’ investments and operations in India include online classifieds business, OLX; MakeMyTrip, the leading online travel company; and payments company, PayU.
Swiggy will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners, according to Naspers.
Additionally, Swiggy will use the capital to hire top-notch talent, especially for machine learning and engineering roles across mid and senior levels. The company will also strengthen its technology backbone and focus on building the next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.
Since the last round of funding six months ago, Swiggy has expanded to 42 additional cities and strengthened its leading market share along with industry-best repeat rates and net promoter score (NPS).
In addition to Swiggy, Naspers has expanded its food delivery portfolio over the past several years by investing in companies with leading businesses in 40 countries around the world. The portfolio also includes Delivery Hero, a leading online food ordering and delivery platform in 36 countries, iFood, a leading online food delivery business in Brazil and Mexico and Mr. D Food, the leading online food delivery business in South Africa.
