[Funding] Swiggy Raises $800 Million in Series J Round; Valuation soars to $5 Billion

Swiggy has announced a fundraise of $800 million in an email it sent to its employees. The investors of these rounds include Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs. Existing investors including Prosus and Accel also participated in the round. This round of funding will leapfrog Swiggy’s valuation to more than $4.9 billion, LiveMint reported. The startup valued at $3.6 billion in 2020.

The company hasn’t closed the round yet since there might be additional interest from the Government of Singapore Investment Corporation fund (GIC) and the Qatar Investment Authority(QIA), suggested the report. Further, If GIC and QIA participate, the valuation may swell the overall investment in the company to almost $1 billion, nearing a total valuation close to that of Zomato. The fresh capital would also help Swiggy compete with its Gurugram-based arch-rival along with Amazon.

Swiggy is not far behind

As competitor Zomato nears going public, Swiggy is not far behind the race. As per reports, Zomato could complete the listing in Mumbai before the end of September. It is planning to file a draft prospectus for its initial public offering (IPO) by April, with a fundraising target of $650 Mn. At a $5.4 Billion valuation, Zomato values almost at par with Swiggy.

“The funding comes as a much-needed relief for the company, which on one end has been battling from the impact of the pandemic, and the other has seen rival Zomato shore up funds. This new fund infusion will keep Swiggy in good stead, as the total fundraise may hit $1 bn in value,” LM quoted a person aware of the fundraise talks.

Swiggy had earlier raised close to $158 Mn, as a part of its Series I round in April last year. It saw participation from Prosus NV, Tencent, Meituan Dianping, Ark Impact, Korea Investment Partners, amongst others. The early months of the pandemic hit the company hard. Thus, it looked to boost its revenue by revamping SUPER, its subscription service. It also diversified its offerings with the expansion of Swiggy Genie in mid-2020. Genie aims to take on Dunzo in the door-to-door courier and parcel delivery service market.