Swiggy has just earned the title of most-raised in a single round for the food-delivery industry.
The app-powered food-delivery service based in India just completed a series H round, bringing in $1 billion. Naspers, a South African investment giant, led the round and was joined by Tencent, Hillhouse Capital, Wellington Management Company and a handful of others.
Swiggy claims to service 120,000 restaurants in more than 60 cities across India. By comparison, Grhubhub services more than 95,000 restaurants in 1,700 U.S. cities, with a valuation of $2.7 billion as a public company. The Economic Times now puts Swiggy at a $3.3 billion valuation, but the company hasn’t said what the round means officially.
According to the company, the funds will go toward adding more food brands and address gaps in supply via delivery-only kitchens. It will also help strengthen the management team and continue updating the technology backbone.
“Swiggy has been at the forefront of elevating the potential of Indian food delivery with its industry-changing innovations and focus on delivering the best consumer experience to millions of Indians,”said CEO Sriharsha Majety, in a press release. “As we add more firepower to our vision of elevating quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share our purpose and have made such a significant investment in our future.”
Why such a monumental investment? Well, for one, the potential for delivery in India is huge given how dense urban areas are. Navigating the many pitfalls, can mean outsized growth for investors and less competition than the U.S. market.