Swiggy, India's most popular food delivery service, has raised $700 million in a new round of fundraising, just six months after collecting $1.25 billion, as it extends its choices in the South Asian market, including an instant-delivery service.

According to a person familiar with the matter, Invesco led the Bengaluru-based company's Series K round, which valued it at $10.7 billion. Swiggy had a market valuation of $5.5 billion in July of last year.

Swiggy has outperformed Zomato, a 13-year-old major competitor whose market value has fallen to around $10 billion since going public last year.

The new round included new investors Baron Capital Group, Kotak, IIFL AMC Late Stake Tech Fund, Axis Growth, Sumeru Venture, Sixteenth Street Capital, Smile Group, Ghisallo, Segantii Capital, and existing backers Prosus Ventures, Qatar Investment Authority, Alpha Wave Global, and ARK Impact, as well as existing backers Prosus Ventures, Qatar Investment Authority, Alpha Wave Global, and ARK Impact.

Swiggy said the fresh financing comes after a solid year of growth in which the firm nearly quadrupled the gross order value of its food delivery operation. Swiggy's quick delivery service, Instamart, is expected to attain a $1 billion annual GMV run rate in the next three quarters, according to the company.

Swiggy has made Instamart one of its main emphasis areas in the last year and a half.

Last year, the business, which operates in over 500 Indian locations, announced intentions to invest $700 million in expanding its products and reach. Quick delivery, which has gained traction in a number of regions in recent years, is becoming more competitive in India as well.

The $100 million fundraising round for Zepto, a Mumbai-based 10-minute delivery service, was headed by Y Combinator Continuity Fund late last year. Last year, Zomato-backed BlinkIt (previously known as Grofers), which, like Swiggy, is funded by SoftBank, shifted its focus to quick delivery.

Invesco Developing Markets Fund's Chief Investment Officer, Justin Leverenz, said in a statement, “as long-term investors, the Invesco Developing Markets fund seeks investment opportunities in the best companies in the world, led by world-class management teams, and that have the potential for long-term structural growth. Our investment in Swiggy represents such an investment.”

According to Sriharsha Majety, Swiggy's co-founder and CEO, Instamart has achieved a GMV in 17 months that took the core food delivery business 40 months to achieve.

He added, “our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services,”

The stakes are high for India's food services business, which analysts at Bernstein predicted would reach $97 billion by March 2026.

they penned, “India food services market is large and expected to reach $97 billion by FY25. Organized food service is growing faster and expected to reach 55% market share by FY25. We expect online penetration to expand to 20% by FY25 and market size to reach $20 billion growing at 46% CAGR. Significant part of the growth will be driven by new customer acquisition and penetration into smaller markets. Zomato had 10 million monthly transacting users (MTU) in FY20, expected to increase 5x by FY25 to ~50 million.”

A third competitor, Amazon, has just entered the Indian food delivery market, but as a Zomato official stated in a public conference last year, the American e-commerce giant has yet to make significant inroads in this area.