Swiggy gets fresh funds
Mumbai: Swiggy has raised $100 million (Rs 642 crore) in series F funding, led by global Internet group and technology investor Naspers and Chinese e-commerce platform Meituan-Dianping.
Meituan-Dianping is a new investor in the Bangalore-based food ordering and delivering firm. In May last year, Naspers had led a $80-million funding round for Swiggy that included existing investors such as Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners.
Swiggy, founded by Rahul Jaimini, Sriharsha Majety and Nandan Reddy, expects the funds infusion will strengthen its leadership position as it intends to introduce a host of unique and advanced products and services.
Swiggy added that as part of its strategy of finding solutions for existing supply gaps in the marketplace, it will make investments in its new supply business lines.
"With this funding, we will further invest in building differentiated offerings, plugging the white spaces in the ecosystem, and developing our technology while keeping superlative customer experience at the core," CEO Majety said.
According to Swiggy, its revenues have increased 500 per cent in the last financial year and its order volumes have nearly doubled since its previous funding in May 2017.
In the last five rounds of funding, Swiggy had raised $155.5 million. The current round is the largest yet for the platform that has tie-ups with over 25,000 restaurants across 11 cities in the country.
"Swiggy has had a continued strong growth through 2017 and now has a clear lead in the market. The company's performance is all the more impressive given the intense competition we see in the food ordering and delivery business in India," Larry Illg, CEO of Naspers Ventures, said.
The fresh funding in Swiggy is an indication of renewed interest in the food ordering space as it comes just days after Alibaba's affiliate Ant Small and Micro Financial Services Group (Ant) invested around $200 million in online food ordering app Zomato.
The investment valued Zomato at a little over $1 billion. The sale transaction is expected to be completed by April 15. The consolidated net sales of Zomato stood at Rs 332.2 crore in 2016-17.
Incidentally Ola, the cab aggregator, also entered the space in December 2017 when it acquired Foodpanda's India business from Germany's Delivery Hero in an all-stock deal. The SoftBank-backed company has also committed investments of $200 million in the Foodpanda India business. Ola's rival Uber is also present in the segment through UberEATS.