Swiggy, the well-known Indian-based food delivery startup firm, has raised a whopping $43 million so that it can look at the prospects of broadening its latest ventures.
The money was obtained as a part of its ongoing Series I funding round. Swiggy’s existing investor Tencent along with a few other players like Ark Impact, Korea Investment Partners, Samsung Ventures, and Mirae Asset Capital Markets, helped in funding the amount.
It comes approximately 45 days after the startup firm, with its roots established in Bangalore, had bagged about $13 million with the help of Prosus Ventures, one of its biggest investors, along with many others, again in around related to Series I funding.
With the financings included in this latest round, Swiggy, which is now about five-years-old, has pushed its round size to about $1.42 billion. With this, the company’s market value now stands at about $3.6 million, according to a source that is quite familiar with the news. Tencent has emerged as the highest investor in the latest round by putting in an investment amount of about $19 million. These figures have been revealed by none other than Swiggy to a local regulator.
This announcement comes in the wake of a three-week lockdown proposed by the Indian Government in a bid to contain the spread of the coronavirus pandemic across the country. As the entire country is reeling under the perils of the lockdown, various people across the country are struggling hard to get groceries and food items. It is because businesses involved with grocery and food delivery have been hit quite hard, and they are struggling to come to terms with the ongoing crisis.
During such critical times, many people are looking forward to exploring and expanding their businesses to different other areas that may be quite useful during this point in time. Presently, Swiggy is operational in about 520 Indian cities. Sometime last year, the food-delivery firm had also started delivering groceries in a few cities.
According to a company executive, Swiggy plans on building a long-lasting path resulting in profit for the company. The firm had raised about $1 billion sometime during December 2018.
Rahul Bothra, who is the Chief Financial Officer (CFO) at Swiggy, made a statement saying that “As we continue to strengthen and expand our services that offer unparalleled convenience to our consumers, we are humbled by the faith shown by our investors year-on-year and welcome the new investors on board. Our focus remains to execute on our vision while building a sustainable path to profitability.”Source
According to Bothra, the firm has set up a “sustainable food delivery business” for many years now. It has also tackled customer issues quite well.
An interesting thing to be noted here is that Swiggy’s competitor Zomato has also raised its capital. Sometime in January this year, the firm received an investment amount of about $150 million from the Ant Financial. During that time, one of the firm’s top executives had stated that the company was very much likely to raise another $450 million in the next few days. However, the company managed to raise an additional amount of $5 million since then. A company spokesperson refused to give any comments regarding the same.
Both Swiggy and Zomato have witnessed a huge drop in the volume of their orders from about 5 million to 1 million owing to the present situation. However, this fall in orders is not something new. As a result, long-term investors are pretty confident.
Earlier this year, Uber exited the Indian food market after having sold its local food businesses to Zomato for about $206 million. Owing to this, presently, this space is dominated by only Zomato and Swiggy. According to Redseer, a research firm, a $4.2 billion business opportunity is presently at stake.