Swiggy raises $113 mn from investors led by Prosus

Marco Green
February 21, 2020

Food ordering and delivery platform Swiggy on Wednesday said it has raised $113 million (over Rs 805 crore) in the latest funding round led by existing investor Prosus NV.

Anand Lunia, VC in India Quotient, said in a recent podcast that food delivery companies have few options, but continue to subsidize the cost of food on their platform, since otherwise most of their customers can not afford the Luxury lunch and dinner. from an online platform. Prosus Ventures, the biggest venture capital for food delivery startups, led the round. Meituan Dianping and Wellington Management Company were also parts of the funding round. This round was raised at a pre-money valuation of $3.5 billion. With this investment, the company is valued at almost $3.6 billion.

Swiggy aims to use the funds 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.

"When we first partnered with Swiggy three years ago, we recognized the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India". We are confident that Swiggy will continue on the path to gain a significant place in the daily lives of Indians, "said Larry Illg, executive director of Prosus Ventures and Food, in a statement".

"Swiggy is now locked in a battle for market share with Zomato and a bunch of smaller, rapidly growing cloud kitchens businesses such as Box8 and Rebel Foods", she added.

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

The exit of Uber from India's food delivery space has, however, made the market a duopoly play, so investors remain bullish. It arch-rival, Zomato, mopped up $150 million from existing investor Ant Financial in January this year.

Other reports by Click Lancashire

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