Swiggy closes $1.25 billion funding

Swiggy closes $1.25 funding round

In the same week that Zomato has gone public, Swiggy too has raised massive funds. Swiggy has closed a $1.25 billion funding round. The round was led by SoftBank Vision Fund 2 and Prosus. Existing investors Accel Partners and Wellington Management too participated in this round. Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac were the new investors who participated in this round.

Swiggy intends to increase its focus and efforts on its core business, make several acquisitions and invest in its grocery delivery business, Swiggy Genie.

It is believed that Swiggy is now valued at $5.5 billion.

Message from the Swiggy management

It is very exciting to have gotten the interest that we did as part of this round and have marquee investors like SoftBank. For us it is a validation of the work we have been doing in food delivery and the huge opportunity that exists for Swiggy to go after over the next 10-15 years as we build on the beginnings we have made on convenience“,- Swiggy co-founder and CEO Sriharsha Majety told Moneycontrol in a rare interview.

Future of the Indian startup ecosystem

It is very heartening to see Indian startups command massive valuations and be able to raise funds successfully. Swiggy’s competitor Zomato had come out with its IPO this week. The Zomato IPO was the largest IPO in the past 15 months. The IPO received overwhelming response and was oversubscribed by 38 times.

Other startups such as Policybazaaar, Mobikwik, Nykaa and Delhivery too are planning for an IPO in the near future. The coming out of these companies for public issues proves that there is a successful business model here, and that the public has sufficient trust in these companies to accept these IPOs and participate in them. This heralds a significant change in the IPO landscape of the country. This is just the beginning for the new age internet companies.

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