Days after backing educational startup Byju’s by leading a $540 million investment, the South African investment giant Naspers, is back at it in India! it has led a $1 billion investment in food delivery company Swiggy.
China’s Tencent Holdings Ltd, Hillhouse Capital and Wellington Management Company also took part in the funding round, together with Swiggy’s existing investors, DST Global, Meituan Dianping and Coatue Management, Swiggy said.
In a statement Naspers figers that it had invested $660 million in Swiggy during this latest round.
This is the largest investment deal in a food delivery chain outside of China, and that also means Swiggy is one of the few in the billion-dollar-round club. Like others where include Flipkart, which is now owned by Walmart, fintech startup Paytm, and OYO, which raised $1 billion from SoftBank’s Vision Fund, Southeast Asia’s Grab and others in September.
Swiggy, based in the southern Indian tech hub of Bengaluru, which was founded in 2014, which serves food from 50,000 restaurants and has a fleet of 120,000 delivery people in India. had raised north of $450 million before today’s announcement. Naspers also led Swiggy’s $210 Series G round this July, and $100 million Series E and $80 million Series F rounds since the middle of last year. The latest investment, one of the largest in a food delivery startup, further cements Naspers’ interest in India.
Swiggy said in a statement that thay have plans to use the capital for hiring machine learning and engineering talent, and further its AI technology to improve matching and discovery inside its service.
The latest round will help Swiggy combat its rivals in India, which include Zomato and UberEats. Indeed, India has emerged as the fastest-growing market for UberEats, company executives said earlier this year.
Swiggy biggest compatriots FoodPanda, which ride-hailing giant Ola acquired late last year. Since then, FoodPanda has attempted to expand its user base in the country by offering users steep discounts.
This deal takes the company to $1.26 billion raised to date. That most recent June-round was $210 million at a $1.3 billion valuation. Swiggy isn’t disclosing a new valuation but according to Economic Times reports it as $3.3 billion.