Swiggy close to raising Rs 5,862 cr at USD 5 bn valuation

According to an internal memo sent by company founder Sriharsha Majety to employees on Monday and seen by IANS, existing investors Accel and Prosus will also participate in the series J round of funding.

Singapore-based GIC Private Ltd and the Qatar Investment Authority (QIA) are also likely to participate in the ongoing funding round at a later stage, people aware of the deal revealed.

Swiggy was valued at $3.7 billion when it raised funds in February last year.

The fresh fundraising comes at a time when Zomato is planning for a $750 million-$1 billion IPO later this year.

"The fundraise was also very heavily oversubscribed given the very positive investor sentiment towards Swiggy," Majety said in the email.

"This fundraise gives us a lot more firepower than the planned investment for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investment later," he told the employees.

"We will just need to now relentlessly invent and execute over the next few years to build an enduring iconic company out of India".

The internal memo further read that the next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy "as the Indian middle class expands and our target segment for convenience grows to 500M (million) users over the period".

"Even globally now everyone acknowledges the TAM (total addressable market) for the food delivery category and how it is still very very early in India," Majety said.