Naspers, a global internet and entertainment group and one of the largest technology investors in the world, on Thursday, said that it will lead $1 billion Series H round in Swiggy, India’s largest food delivery platform.
Naspers invested $660 million while others who participated include DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management.
“Swiggy has been at the forefront of elevating the potential of Indian food delivery with its industry-changing innovations and focus on delivering the best consumer experience to millions of Indians,” said Sriharsha Majety, CEO, Swiggy.
Founded in 2014, Swiggy entered India’s unicorn club with a $210 million funding . With this, Swiggy has become the fifth most valuable startup in the country, commanding a valuation of $3.3 billion after the funding. Of the $1 billion, $800 million will be primary capital or fresh funds.
“As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share our purpose and have made such a significant investment in our future,” Majety said.
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.
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.
Naspers’ substantial investment in Swiggy, as well as its recent investment in BYJU’S leading a $540 million 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, and 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.
“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Larry Illg, CEO Food and Ventures, Naspers.
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).