South Africa’s Naspers said that it has executed definitive agreements to lead a USD one billion Series H round in Swiggy, India’s largest food delivery platform with a US$660m investment.

The company said in a statement that the round includes participation from several existing investors including DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management.

Naspers’ substantial investment in Swiggy, as well as its recent investment in BYJU’S leading a USD 540 million funding round, demonstrates the company’s commitment to India across multiple sectors. Indian online consumers will be a significant driver of online growth in the world, and in addition to food and education, Naspers’ investments and operations in India include online classifieds business, OLX; MakeMyTrip, the leading online travel company; and payments company, PayU. The quality of the best Indian entrepreneurs and their ability to build innovative businesses that address the unique needs of the Indian consumer offer unparalleled growth opportunities.

Swiggy’s unprecedented growth and focus on providing the best service possible for Indian consumers is demonstrated by the doubling of its gross merchandise value in the last six months, as it continues to unlock the tremendous potential in Indian food delivery.

Swiggy said it will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners. Additionally, Swiggy will use the capital to hire top-notch talent, especially for machine learning and engineering roles across mid and senior levels. The company will also strengthen its technology backbone and focus on building the next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.

“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 Sriharsha Majety, CEO, Swiggy. “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.”

“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Larry Illg, CEO Food and Ventures, Naspers. “Our latest round of capital will help to accelerate Swiggy’s journey towards its vision of providing unmatched convenience in food ordering and delivery for Indian consumers.”

Since the last round of funding six months ago, Swiggy has expanded to 42 additional cities and strengthened its leading market share along with industry-best repeat rates and net promoter score (NPS). Swiggy’s expansion follows a conscious effort to grow in a sustainable manner, ensuring unmatched consumer experience, consolidation of demand for its restaurant partners, and enabling sustainable earnings for close to 120,000 delivery partners.

In addition to Swiggy, Naspers has expanded its food delivery portfolio over the past several years by investing in companies with leading businesses in 40 countries around the world. The portfolio also includes Delivery Hero, a leading online food ordering and delivery platform in 36 countries, iFood, a leading online food delivery business in Brazil and Mexico and Mr. D Food, the leading online food delivery business in South Africa. The online food delivery market globally is underpenetrated, presenting big growth opportunities that are well-aligned with Naspers’ footprint. Shifting global trends including increased population and smartphone usage will fuel additional growth in online food delivery, and Naspers has the talent and business expertise within the group to successfully support and grow these businesses in high-growth markets globally.

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