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SoftBank-backed Indian food delivery startup Swiggy has closed a $700 million funding round led by asset manager Invesco, the company said in a statement on Monday. 

With the current round, the food tech platform has almost doubled its valuation from its previous fundraise to $10.7 billion.

The Bengaluru-based online food delivery platform said it saw participation from new investors such as Baron Capital Group, Kotak, among others.

Existing investors – Alpha Wave Global, Qatar Investment Authority, Ark Impact, Prosus also participated in the funding round.

"While the food delivery business has nearly doubled in gross order value (GOV) in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart," Swiggy said in a statement.

The firm said its grocery delivery service Instamart is on track to reach an annualised gross merchandise value run rate of $1 billion in the next three quarters.

Demand for delivery of food and groceries has accelerated in Asia's third-largest economy since the onset of the coronavirus pandemic, prompting firms to expand their operations in the race to dominate the sector.

Instamart competes with Tata-owned BigBasket, Grofers, Amazon.com Inc's Amazon Fresh and Reliance Industries' JioMart. In Grofers, Swiggy's larger rival Zomato Ltd holds a stake.

Swiggy is also expected to follow Zomato with an initial public offering about a year or so later.

Swiggy had raised $1.25 billion in a SoftBank-led fundraising in July. The firm has seen its valuation almost double since it was valued at $5.5 billion last year.

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