Swiggy Raises $113 Mn Series I Round Led By Prosus

Cornelia Mascio
Febbraio 21, 2020

Food tech platform Swiggy has recently raised $113 million, led by existing investor Naspers.

Swiggy competes with Zomato and together the two largest food delivery brands account for 80 per cent market share.

"This investment is part of Swiggy's plan to raise up to $1 billion for its food delivery and cloud kitchens business".

Other existing investors Hadley Harbour Master Investments and Meituan also participated in the round, regulatory filings show. The new round values Swiggy at approximately $ 3.3 billion, just like its previous round, according to an analysis of its regulatory presentation.

The online food aggregator will be using fresh capital to further develop its new lines of business, addressing visible gaps in the market.

Swiggy's transaction numbers grew by about 2.5 times in past year, with the restaurant partner base growing about four times with 10 000 restaurants being added every month.

Reports also state that Swiggy's valuation has been largely flat so far, from its last $1 billion round in December 2018.

"Swiggy has built a solid leadership position in India and is utilising its strong logistics network and consumer loyalty to expand its offerings to services that continue to make consumers' lives more convenient", said Larry Illg, CEO, Prosus Ventures and Food (formerly Naspers Ventures and Food).

Weeks after Zomato acquired Uber's Eats business in India, its main local rival is accumulating some of its own ammunition.

"Swiggy continues to exhibit strong execution and a steadfast commitment to delivering the best service to consumers and has one of the best operational teams in food delivery globally".

Some analysts say that it will be very challenging for Swiggy and Zomato, both of which are spending over $20 million a month to win customers, to reach profitability.

Unlike in the developed markets like the USA, where the order value of each delivery is about $33, in India, a similar item carries the price tag of $4.

But, for this ongoing financial year, Swiggy has forecast a revenue of INR.

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