Swiggy announced the closing of a $1.25 billion (over Rs 9,357 crore) fundraise led by SoftBank Vision Funds 2 and its long-term investor Prosus, one of the largest technology investors in the world.

The food delivery platform said that the fresh investment will accelerate its multi-year strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond. It expects the total addressable market for convenience grow to 500 million users in the next decade.

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This comes after Zomato witnessed a mega IPO last week.

Swiggy said it will enhance its capabilities in technology and artificial intelligence (AI) and strengthen teams across engineering, product, data science and analytics, and business and supply chain for its newer initiatives.

“The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category. Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span, especially in the past 15 months of the pandemic,” said Sriharsha Majety, CEO, Swiggy.

The Swiggy funding marks the first investment in the Indian food delivery category by SoftBank Vision Fund 2, with participation by existing investors, Accel Partners and Wellington Management.

In addition, Swiggy welcomed new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac.

The company said that the fundraise was heavily oversubscribed following strong interest from investors. It comes on the back of its rapid recovery from the impacts of Covid-19 and subsequent growth in 2020-21.

“We are excited to partner with Swiggy as they increase their service offerings and daily consumer touchpoints in the rapidly developing digital economy,” said Munish Varma, Managing Partner, SoftBank Investment Advisers.

Swiggy has expanded its pick-up and drop service, Swiggy Genie, to 65 cities and deepened the presence of its meat delivery service in key markets.

Supr Daily, Swiggy’s daily grocery delivery service, is now present across major cities, the company said.

“I believe 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 500 million users,” said Majety.

To relieve some of the stress of the Covid-19 pandemic, Swiggy launched the Jumpstart programme, supporting over 50,000 restaurants last year.

Founded in 2014, Swiggy connects consumers to over 1,50,000 restaurant partners and stores in over 500 cities.

“Swiggy has a steadfast commitment to delivering unparalleled service to consumers, fulfilling their needs across a range of services, while striving to be the most desirable platform for restaurants and delivery partners,” said Larry Illg, CEO, Prosus Food.