Online food ordering and delivery platform Swiggy has raised $100 million in fresh funding led by South African investment giant Naspers while also bringing onboard Chinese online-to-offline platform Meituan-Dianping as an investor.
The announcement comes less than a week after rival Zomato entered into an agreement with Alibaba Group’s financial arm Ant Financials to raise $150 million in funding. That deal also included a $50 million secondary component in which leading investor InfoEdge sold a portion of its stake to Ant Financials.
The two investments along with Indian ride hailing giant Ola’s acquisition of FoodPanda’s India unit from Delivery Hero in December, is indicative of a resurgent interest in India’s food-tech space.
The sector was among the hardest hit in the funding slowdown of 2016, with several players shutting shop.
Swiggy says it will utilise the capital to introduce a host of new offerings and will invest in its supply chain. The company says it will continue to expand its New Supply initiative that has so far seen the launch of remote kitchens for restaurant partners to use and also the launch of Swiggy’s own in-house restaurant brands.
“We want to continue to bring convenience, choice and reliability to our users as we fulfil our mission of changing the way India eats,” said Sriharsha Majety, CEO of Swiggy, in a statement. “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.”
The company says it has been able to double order volumes since its previous funding round and is on a strong growth path. Swiggy also expanded into tier two towns of Ahmedabad, Jaipur and Chandigarh recently, moving beyond just servicing customers in the country’s largest metro cities.
“Swiggy has continued strong growth through 2017 and now has a clear lead in the market,” said Larry Illg, CEO of Naspers Ventures. “The company’s performance is all the more impressive given the intense competition we see in the food ordering and delivery business in India. Swiggy has shown it has the ability to rise above the competition and create long-term relationships with its users.”
So far Swiggy has raised a little over $250 million in funding and apart from signing up thousands of restaurants and getting a few million customers on board, it’s biggest strength has been in controlling 100 percent of its delivery fleet. This has allowed the company to continually carve away at average delivery times and now even the competition is following in its footsteps.business-standard