Bangalore: Bangalore-based online food-tech company Swiggy has joined the unicorn club in India with USD 210 million in Series G funding led by Naspers Ventures, an existing investor, along with new investor – DST Global. The company plans to use the funds to ramp up the supply chain network and also to explore new markets for expansion.
The announcement comes just months after it raised USD 100 million from Naspers and Meituan-Dianping in February this year.
Chinese internet firm Meituan-Dianping, which had participated in the previous round, has also invested in the latest funding round, along with new investor Coatue Management.
Swiggy, one of the fastest growing and well capitalised food-tech companies in India has raised over USD 460 million in funding to date, including the latest round.
“The company also plans to double its technology headcount to build robust operations, deep personalization, and connected supply chain systems,” the company said in a statement.
Since the last round of funding three months ago, Swiggy has begun operations in Kochi, Coimbatore, Nagpur and Lucknow and has introduced innovative payment options for both consumers and delivery partners.
“We are thrilled to have grown the online food delivery market in India at an exponential rate, always keeping our consumers at the helm. With this investment, we will continue to widen Swiggy’s offerings, along with bolstering our capabilities and plugging the gaps in the on-demand delivery ecosystem,” Sriharsha Majety, chief executive officer of Swiggy said.
The company did not confirm, but according to analyst calculations, Swiggy will be valued at USD 1.2 billion for the latest round. In the last round Swiggy was valued at USD 700 million. The company, which was set up in 2014, crossed the USD 1 billion mark for unicorn status, in just four years. The latest funding adds extra muscle to Swiggy in competing with the likes of Zomato, Foodpanda, and UberEats.
Gurgaon-based Zomato also raised a huge round of USD 200 million in funding this year from Ant Financial, Alibaba’s payment affiliate. The funding valued Zomato at over USD 1 billion.
Two of the biggest food-tech companies – Zomato and Swiggy – have been pitted against each other since merger talks between the two fell apart in November last year.
Swiggy claims to be working with over 35,000 restaurants with a delivery fleet of more than 40,000 partners in 14 cities. Zomato, on the other hand, is gradually catching up with Swiggy in terms of food ordering, which accounted for nearly 30% of its overall revenue in FY18. Zomato ordering is currently functional in 15 Indian cities and 5 cities in the Middle East.
According to analysts at RedSeer Consulting, India’s online food order segment witnessed a quarter-on-quarter 30% jump in daily order handling in the first quarter of 2018. The number of orders handled by the leading food delivery companies – such as Zomato, Swiggy, and Freshmenu – was an average 600,000 in the first three months of 2018, against 460,000 orders in the October-December quarter of 2017.
“Swiggy has the best technology platform in the market and when combined with its business model, which caters to the unique demands of the Indian ecosystem, (it) enables the company to deliver the best possible service to Indian consumers,” said Larry Illg, CEO of Naspers Ventures.