Swiggy raises Rs 5,225 crore from Invesco; to advance core platform, grow quick commerce grocery service Instamart

The food delivery platform Swiggy announced on Monday that it had raised USD 700 million (approximately Rs 5,225 crore) in new funding, led by investment firm Invesco. The funds will mainly be used to advance its core platform and grow its quick commerce grocery service Instamart.

According to PTI, among the other new investors in the round are Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF-I, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital, Swiggy said in a statement.

Additionally, Swiggy's existing investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, ARK Impact, and long-term investor Prosus participated in the round.

According to the company, the new fundraise also sees increased participation from institutional investors in India and globally, six months after raising USD 1.25 billion.
"This investment comes at a time when the adoption of food and online grocery is accelerating, and the consumer demand for Swiggy's many services continue to grow," the company said.

With the fund raised, Swiggy said its food delivery business has nearly doubled its gross order value (GOV) over the past year, enabling it to make significant investments in its quick commerce grocery service, Instamart.

Instamart will achieve an annualised GMV (gross merchandise value) run rate of USD 1 billion in the next three quarters, continuing to lead the emerging quick commerce grocery space. The statement said that the company would also further strengthen its investments in the broader ecosystem.

Commenting on the fresh round of funding, Swiggy CEO Sriharsha Majety said, "Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services."

Majety further said, "The GMV our food delivery business achieved in 40 months, took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers."

On its investment in Swiggy, Invesco Developing Markets Fund Chief Investment Officer Justin Leverenz said, "As long-term investors, the Invesco Developing Markets fund seeks investment opportunities in the best companies in the world, led by world-class management teams, and that has the potential for long-term structural growth. Our investment in Swiggy represents such an investment."

Swiggy expanded its Instamart service to 19 cities during the past few months. In addition, Swiggy's pick up and drop service, Swiggy Genie, is available in 68 cities, while Swiggy's meat delivery service, and daily grocery service, Supr Daily, are available in all major cities of India.

Additionally, Swiggy has launched Swiggy One, a comprehensive membership program with discounts on food, groceries, and other on-demand services Swiggy.

(With inputs from PTI)