Indian food delivery platform Swiggy has raised $700 million from investors led by Invesco to expand its on-demand grocery service as demand rises. Participating investors also included Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF-I, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital, the startup said in a statement on Monday. Existing donors, including Alpha Wave Global and Qatar Investment Authority, also participated.
Although Swiggy has not made his valuation public, the round values the company at $10.7 billion, according to people familiar with the matter. The round comes six months after the Bangalore-based startup raised $1.25 billion.
Backed by the likes of SoftBank Group Corp., Swiggy is among a slew of Indian startups that are disrupting traditional industries as more consumers venture online. It competes with fellow unicorn Zomato Ltd., which went public last year in an initial public offering of $1.3 billion, and the food delivery arm of Amazon.com Inc.’s India unit.
While Swiggy’s food delivery business has nearly doubled in gross order value in the past year, the startup is also expanding its Instamart grocery service. It now operates in 19 cities across the country.
Swiggy aims to lead the way in the emerging fast grocery market, which typically means delivery within 10 to 30 minutes. Instamart is expected to reach an annualized gross value of $1 billion in the next three quarters, the company said.
“Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month,” said Sriharsha Majety, co-founder and CEO of Swiggy in the statement.
Founded in 2014, the company connects users to more than 185,000 restaurants.