Foreign funds seem to take an interest in India’s local internet-based consumer firms. The latest in the line to make the most out of it is Swiggy, an Indian food delivery startup. It has managed to raise $1.25billion in the recent round of funding supported by SoftBank and Prosus.
This latest fundraise will make Swiggy value at $5.5billion, as reported by TechCrunch. Swiggy had already raised $800 million in April. The notable investors include Goldman Sachs and Qatar Investment Authority. This fundraising comes after the week of Zomato being valued at $46.3 billion and oversubscribed almost 38 times in a day. Zomato is considered to be the biggest rival in business for Swiggy.
The pandemic had hit the food delivery companies badly and they saw a huge fall in their profits. But as the pandemic situation changes slowly and also more people began to order online, these companies are slowly and steadily moving towards making a profit.
Sriharsha Majethy, CEO of Swiggy commented to Reuters that “the scope of food delivery business in India is massive” and that they will continue to invest in the field more. Swiggy has also made its entrance into online grocery delivery and pick-up and drop services earlier.