Food delivery app Swiggy has raised $800 million in a new round of funding that will value it at $5 billion.
The round saw participation from global alternative asset manager Falcon Edge Capital, Singapore-based fund management firm Amansa Capital, US-based private investment firm, Think Capital, French asset management firm Carmignac and Goldman Sachs. Many existing investors such as Prosus and Accel also joined the round.
Co-founder and CEO Sriharsha Majety sent an email to employees confirming the investment and plans for the food delivery app.
Moneycontrol has seen a copy of the mail.
"This fundraise gives us a lot more firepower than the planned investments for our current business lines. Given our unfiltered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investment later," Majety said without elaborating on the new plans.
He added, for good measure: "The next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and our target segment for convenience grows to 500 million users over this period."
Speaking about the revival of the food-delivery business, post the pandemic, Majety informed employees that the business is the `strongest it has ever been’ and that the company had a very clear path to profitability.
Talking about Instamart, Swiggy's foray in the grocery delivery space last year he said that the segment was showing "amazing promise". "Overall, between the offerings that are scaling fast now and the pipeline we have, our vision for unparalleled convenience will come to life in a very big way over the next few quarters," he said.
The current funding will boost the morale of the company at a time when Zomato is speeding ahead with its IPO plans through which it is expecting to raise anywhere between $750 million to $1 billion.
If all goes well, Zomato would be among the first Indian tech start-ups to go public in 2021. It will also be the country’s first internet IPO , since companies such as Infoedge, which owns Naukri.com, and MakeMyTrip. com is also a shareholder in Zomato.
However it wasn't immediately clear if the company was looking to list in India or the US.
Swiggy on the other hand raised $156 million in the last round. While it announced a $113 million fund raise from existing investor Prosus NV. Meituan Dianping and Wellington Management Company last year in February, in April it announced another tranche of $43 million, which was led by existing investor Chinese internet giant, Tencent, to close that round.
The company that is owned and operated by parent Bundl Technologies Pvt Ltd, reported a loss of Rs 3,768 crore in the financial year 2019-20, a sharp 61 percent rise from Rs 2,345 crore in the previous year.
The revenue for the financial year that ended March 31, 2020, however, increased by 115 percent to Rs 2,776 core, with a total expense of Rs 6,545 crore.