Swiggy, the Indian Food Delivery Startup has raised a huge amount of funding. They got $210 million funding for expansion and entered into the billion-dollar startup club. It is for the first time that the company has entered the billion dollar valuation club. The funding is led by Naspers, who was associated with Swiggy for a long time. Naspers is a media conglomerate who is famous for making early bids and invest in new companies. Other than this, Meituan Dianping and Coatue Management also took part in the new round of fundings. Meituan Dianping is a returning investor whereas Coatue Management is new in this field.
The valuation is not made public until now but most of the sources claim it to be certain. However, it was confirmed long back with many press channels reporting the funding. Economic Times was the first to report such back in April.
New Funding Round
The Series G round of funding for Swiggy seems a benefit to them. The new round came months after Naspers and Meituan Dianping invested $100 million in February. Overall, Swiggy has raised $465 million from its different rounds of funding. This makes the company India’s most successful food startup than all its competitors. The nearest competitor Zomato has raised $440 million till now from different investors include Alibaba. Zomato has its reach outside India too whereas Swiggy is an all Indian based startup. Swiggy beats Zomato in valuation as Zomato is valued at $1.1 billion.
Swiggy has not revealed its plan on how they are going to use the new capital they raised. However, as sources confirm it might spend the money in expanding its reach to other locations and restaurants in India and also improve its logistics. Sriharsha Majety, CEO of Swiggy said that “With the new investment we received, we will try to widen the reach of our network. We will reduce the gap in the on-demand delivery system and increase our capabilities”. However, we assume that most of the capital will be used up for the burn rate of the company since it is capital oriented.
Swiggy – A Dream Indian Food Startup
Swiggy has claimed to cover over 35,000 restaurants all over India. They have a delivery group of over 40,000 people making it just above 1 person for each restaurant it is connected with. The company has not disclosed anything about their financial gains but said that their finances increased by three times when compared with the last financial year.
However, they face a lot much competition in the future. If they want to be the top leader, they have to work quite hard as they have so many competitions. Food is the primary thing for everyone and people love smarter ways to order and eat them. Before Swiggy had only one top competitor – Zomato but now it has increased. Ola, the ride-sharing service acquired Food Panda last year. Uber, another ride-sharing service has started its Uber Eats and its attractive. They are building it quite well. Also, the top player in technology, Google has launched its Areo Food Delivery for Indians in April last year. But, Swiggy is blooming well. They need to make sure that they don’t go down to these competitors and maintain their level serving the people.