Prosus leads funding round for food platform Swiggy
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PROSUS, the international internet assets division of Naspers, again led investors in a fund-raise by Indian food delivery platform Swiggy, which announced yesterday it had raised more than $1.25 billion (about R18bn) as it grows its core food delivery business and builds new food and non-food offers.
Prosus entered the food delivery market in 2013 and first invested in Swiggy in 2017.
Prosus now has leading food marketplaces (3P) and first-party (1P) businesses globally in its portfolio.
Its food delivery businesses, including Delivery Hero, iFood and Swiggy, as well as recent investments in Wolt, Oda and Flink, are established in 69 markets around the world.
Swiggy intends to enhance its capabilities in technology and artificial intelligence (AI), and strengthen teams across engineering, product, data science and analytics, as well as in business and supply chain for its newer initiatives.
In a statement yesterday, the companies said the investment, raised from, among others, Softbank’s Vision Fund 2, was heavily oversubscribed following strong interest from investors, and came on the back of Swiggy’s rapid recovery from the impact of Covid-19 and subsequent growth in 2020/21.
Founded in 2014, Swiggy is leading the hyperlocal delivery market in India, connecting consumers to more than 150 000 restaurant partners and stores in more than 500 cities.
Its instant grocery delivery service, Instamart, was growing rapidly to create the convenience grocery category within India’s grocery delivery segment.
Swiggy has also expanded its pick-up-and-drop service, Swiggy Genie, to 65 cities and deepened the presence of its meat delivery service in key markets.
Larry Illg, the chief executive of Prosus Food, said: “As a long-term investor in Swiggy, we are continually impressed by the solid business that Swiggy has built, standing out amongst others in India. Swiggy has a steadfast commitment to delivering unparalleled service to consumers, fulfilling their needs across a range of services, while striving to be the most desirable platform for restaurants and delivery partners.”
Illg said Prosus has one of the most comprehensive views of food delivery globally given the reach of its portfolio, and Swiggy continued to exhibit strong execution and have one of the best operational teams in food delivery globally.
“We are confident Swiggy is on a path to build one of the most admirable Indian companies, positively affecting the lives of Indian consumers on a daily basis,” he said.