Naspers leads $1 billion round in Swiggy

Bengaluru based Foodtech unicorn Swiggy lays off 1,100 employees as the demand slows amid ongoing coronavirus outbreak. (Image: Moneycontrol)

Priyanka Sahay

Moneycontrol News 

Food delivery firm Swiggy on December 20 said its existing investor Naspers has led its fresh funding round of $1 billion in what is seen as the single largest financing round in the Indian food-tech industry.

The round also saw participation from other existing investors such as DST Global, Meituan Dianping and Coatue Management, along with new investors such as Tencent, Hillhouse Capital and Wellington Management Company.

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 talent, especially for machine learning and engineering roles across the mid and senior levels. The company will further strengthen its technology backbone and focus on building a next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.

"Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities,” said Larry Illg, CEO, Food and Ventures, Naspers.

Since the last funding round six months ago, Swiggy has expanded to 42 additional cities and doubled in gross merchandise value.

Overall, Swiggy has raised a total of $1.26 billion.