Funding · Commerce & Consumer Brands

Swiggy in talks for $300 million internal round

What they do

Swiggy operates a food delivery platform and quick commerce service Instamart

It is in early talks to raise about $300 million from existing investors at a potentially lower valuation

The company is also preparing for an IPO next year and aims to turn its core food business profitable

Swiggy is in early-stage talks to raise fresh capital through an internal round.
The potential round is for about $300 million from existing investors including SoftBank, Prosus, and Alpha Wave.
This round could be a downround (a funding round at a lower valuation than the previous one), with the valuation potentially slashed by about 30%.
Swiggy's last valuation was $10.7 billion in January 2022.
In March 2023, Invesco, a lead investor in the last round, cut Swiggy's valuation by 25.2% to $8 billion.
The new money is likely to be used for growing the quick commerce business and new initiatives like Minis (an e-commerce marketplace for local businesses).
Swiggy is also preparing for an IPO (initial public offering, when a company sells shares to the public for the first time) next year in 2024.
However, both Swiggy and Prosus have said the news is speculative and false.

Swiggy's rival Zomato debuted on the public market in July 2021 at a $12 billion valuation.
Zomato has lost about 45% of its market cap (total value of its shares) in 21 months, now at $6.7 billion.
Swiggy's FY22 gross revenue (GMV, or gross merchandise value, the total value of goods sold) was Rs 5,705 crore, up 2.2 times from the previous year.
Swiggy's FY22 losses were Rs 3,629 crore, also up 2.2 times from the previous year.
Swiggy has set a target to turn its core food delivery business profitable in May 2023.

Swiggy is a food delivery platform that connects customers with restaurants.
It also operates Instamart, a quick commerce service delivering groceries and essentials in minutes.
Swiggy has launched Minis, an e-commerce marketplace for local businesses.
The company makes money by charging restaurants a commission on each order and by charging customers delivery fees.
Swiggy operates across hundreds of cities in India.

SoftBank (existing investor) — SoftBank is a Japanese multinational conglomerate that invests in technology companies through its Vision Fund.
Prosus (existing investor) — Prosus is a global consumer internet group and a subsidiary of Naspers.
Alpha Wave (existing investor) — Alpha Wave is an investment firm that focuses on technology and growth companies.