Swiggy, the renowned food and grocery delivery giant, has outpaced its rival Zomato in terms of valuation, following a successful fundraising round of $700 million. This milestone was propelled by the downturn experienced in the stock market on Monday, January 24.
According to a source familiar with the deal, Swiggy’s valuation reached $10.7 billion in its latest financing round, although the company has not officially confirmed this figure. Established in 2014, Swiggy has ascended to the status of a “decacorn,” signifying a company valued at $10 billion or more.
Shifting Valuations
In contrast, Zomato witnessed a decline in its valuation, with its shares plummeting below the ₹100 mark. The company’s shares hit an all-time low of ₹91, resulting in a market capitalization of ₹71,629 crore ($9.6 billion).
Funding Round Details
Swiggy’s recent funding round was spearheaded by Invesco, a prominent US-based investment firm, marking a fresh injection of external capital into the company. Several new investors, including Baron Capital Group, Sumeru Venture, and IIFL AMC Late Stage Tech Fund, joined the financing round.
Additionally, existing investors such as Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, along with Prosus, continued their support for Swiggy’s growth trajectory.
Strategic Focus
Commenting on the development, Swiggy’s Chief Executive Officer (CEO), Sriharsha Majety, highlighted the remarkable performance of Instamart, Swiggy’s quick commerce arm. He emphasized Swiggy’s commitment to expanding into new categories to provide unparalleled convenience to Indian consumers.
Instamart, renowned for its swift delivery of groceries within 15-30 minutes, has showcased impressive growth, achieving a level of gross merchandise value (GMV) in just 17 months that took Swiggy’s food delivery business 40 months to accomplish.
As Swiggy continues to strengthen its position in the market and explore innovative avenues for growth, its latest funding round underscores investors’ confidence in the company’s vision and potential for future success.
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