Food and grocery delivery platform Swiggy: Food and grocery delivery platform Swiggy has raised $700 million with a valuation of $10.7 billion. Thus, the company’s valuation has almost doubled in just six months. This fundraising becomes even more important because on January 24, there was a sharp decline in technology stocks in the Indian market. On Monday, Zomato’s stock closed at Rs 90.95 with a weakness of about 20 percent and has lost about 32 percent in 5 days.
Fourth company to have more than $10 billion valuation
With this investment, Bengaluru-based Swiggy has become the fourth Decacorn in the country, that is, a privately-held company with a value of $10 billion or more. Prior to this, fintech company Paytm, hotel aggregator Oyo and ed-tech company Byju’s Decacorn have become.
Which companies invested
The $700 million investment round led by Invesco includes Barron Capital Group, Sumeru Venture, IIFL AMC Late State Tech Fund, Kotak, Axis Growth Avenues AIF-1, Sixteen Street Capital, Ghisello, Smile, the company said in a release. New investors such as the Group and Seganti Capital have participated. The round was attended by existing investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority and ARK Impact, as well as long-term investor Prosus.
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In the last funding round held in July 2021, Swiggy raised $1.25 billion from SoftBank Vision Fund 2, Prosus, Accel and Wellington with a valuation of $5.5 billion.
Reliance Retail recently invested in Dunzo
A few days before this fundraising of Swiggy, Reliance Retail had announced an investment of $ 240 million in its rival on-demand delivery startup Dunzo. With this, the country’s largest company has got access to Rapid Delivery, one of the hottest startup themes in the country.
This new investment will help Swiggy to strengthen its food delivery business and focus on its grocery delivery business Instamart. Instamart is currently competing with Zomato-invested Blinkit, Reliance-invested Dunzo and newcomer Zepto. Flipkart, Amazon and Tata-owned BigBasket are other companies in this segment.
The decline in the recently listed companies continues, 25% to 50% of the shares broken from their issue price
increasing market penetration
The company said that it will further increase investment in this ecosystem. Swiggy CEO Sriharsha Majety said, “The GMV our food delivery startup achieved in 40 months took Instamart 17 months, while talking about the Gross Merchandise Value. This shows the benefits the platform has got from Swiggy.”
“We will be doubly investing in this to develop more categories in line with our mission of offering unmatched facilities to the Indian customers,” he added. In December, Swiggy said it would invest $700 million in Instamart, making it easier to do so.
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