Swiggy Gets $10 Billion Valuation in Latest Funding Round
India’s closest competitor to Zomato, has become a Decacorn. If a Unicorn is a digital company with a valuation of $1 billion then Decacorn has a valuation of $10 billion or Rs.75,000 crore. Swiggy joins the handful of Decacorns in India with its latest valuation of $10.7 billion derived from its $700 million round of funding. The valuation of Swiggy has doubled in last one year and it has expanded 100-fold since January 2016.
The latest round of $700 million was raised from a slew of new investors including Baron Capital, Sumeru Venture, IIFL AMC, Kotak, Segantii Capital etc. However, even existing investors in Swiggy like Alpha Wave Global, Qatar Investment Authority, Prosus and ARK Impact participated in this round of funding. Currently, India’s most valuable digital start-up is Byju’s at $21 billion.
Swiggy’s core food delivery business is doing phenomenally well and has grown by leaps and bounds during the pandemic. More importantly, its quick delivery of groceries under the banner of Instamart has become a big hit. Swiggy has seen its gross order value or GOV double in the last one year. Instamart plans to dominate the quick commerce grocery space where it is also pitted against Amazon, Flipkart, Dunzo, Licious and Ola Foods.
Last year, Softbank participated in the $1.25 billion fund raising for Swiggy. From that point, the valuation of Swiggy has nearly doubled in the last one year. That can also be largely attributed to the rapid expansion of Instamart to 19 cities. In short, Swiggy now has multiple growth catalysts in place to drive its sustained expansion in the coming year. The valuation of Swiggy is now closing in on the valuation of Zomato which stand about 5% higher.
Swiggy is spreading its bets beyond just food delivery and into quick commerce in a big way. Thus Swiggy has transformed into a leading on-demand convenience platform. It connects consumers to over 1,85,000 restaurant partners and stores spread across more than 500 cities in India. Its express delivery service Instamart is currently available in 19 cities.
Every order delivered by Swiggy’s delivery executives, ensures a host of customer-centric features like fast delivery, no minimum order value, live order tracking and 24/7 customer support. It may have started as an option to Zomato but now Swiggy has come into its own with valuations that rival that of Zomato. That is what the latest round of funding underlines quite clearly.
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