Indian food delivery startup Swiggy has raised $1.25 billion in a funding round led by SoftBank’s Vision Fund 2 and technology investor Prosus as foreign funds raise their stake in internet-based consumer firms.
The Swiggy funding marks the first investment in the Indian food delivery category by SoftBank Vision Fund 2, with participation by existing investors, Accel Partners and Wellington Management.
In addition, Swiggy welcomed new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac.
Last week, rival Zomato, backed by China’s Ant Group, drew bids worth $46.3 billion in a stock offering that was oversubscribed more than 38 times.
Swiggy had raised $800 million in April earlier this year, according to local media.
“The scope of food delivery in India is massive and over the next few years we will continue to invest aggressively into growing this category,” Sriharsha Majety, chief executive officer at Swiggy, said.
The Bengaluru-based firm has forayed into the online grocery delivery through Instamart in the past year. It has also widened its pick-up and drop service, Swiggy Genie, which competes with the Google-backed hyperlocal courier startup Dunzo.
Swiggy said it will 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.
Swiggy has expanded its pick-up and drop service, Swiggy Genie, to 65 cities and deepened the presence of its meat delivery service in key markets.
Supr Daily, Swiggy’s daily grocery delivery service, is now present across major cities, the company said.
Founded in 2014, Swiggy currently connects consumers to over 1,50,000 restaurant partners and stores in over 500 cities.