Swiggy has raised $800 million in a funding round with Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac, and Goldman Sachs joining as new investors. The news came in an internal memo sent by company founder Sriharsa Majety to employees, reported Mint. The fundraising will increase Swiggy’s valuation to more than $4.9 billion from its previous ascribed valuation of $3.6 billion in 2020.
Existing investors Accel and Prosus (previously Naspers) will also take part in the round. Sovereign wealth funds of Singapore’s GIC Pvt. Ltd. and Qatar Investment Authority are also expected to join the ongoing round at a later stage.
In the email, Majety said the fundraise was heavily oversubscribed given the “very positive investment sentiment towards Swiggy” and that it gives the company more firepower than the planner investment for its current businesses. The company had raised $157 million last year at a valuation of $3.7 billion.
“We’re coming out of a very hard phase during the last year given Covid and have weathered the storm, but everything we do from here on needs to maximise the chances of our succeeding in the long-term,” wrote Majety, according to TechCrunch.
Swiggy’s primary rival Zomato is expected to go public soon. In February, Zomato had raised $250 million from five different investors as part of a primary round led by Kora Management. The latest round took Zomato to a post-money valuation of $5.4 billion.
While announcing the company’s intentions to go public, in September, Goyal had said that new funds are being treated “as a war-chest for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business.”