Weeks after Zomato acquired Uber’s Eats business in India, its chief local rival is bulking up some ammunition of its own.
Swiggy, India’s largest food delivery startup, announced on Wednesday it has raised $113 million as part of its Series I financing round. Prosus Ventures, the biggest venture capital for food delivery startups, led the round.
Meituan Dianping and Wellington Management Company also participated. The new round values Swiggy at about $3.3 billion, same as its previous round, according to an analysis of its regulatory filing.
Sriharsha Majety, co-founder and chief executive of Swiggy, said the startup will use the fresh capital to invest in “new lines of business” such as cloud kitchen and delivery beyond food items, and get on a “sustainable path to profitability.”
Prosus Ventures, formerly known as Naspers Ventures and Food, first wrote a check to Swiggy three years ago. Since then, it has become its biggest investor — having pumped in more than $700 million alone in the startup’s $1 billion financing round in December 2018.
“Swiggy continues to exhibit strong execution and a steadfast commitment to delivering the best service to consumers and has one of the best operational teams in food delivery globally. We are confident Swiggy will continue on a path to earn a significant place in the daily lives of Indians,” said Larry Illg, chief executive of Prosus Ventures and Food, in a statement.
The Bangalore-headquartered firm, which is operational in 520 cities, said it has witnessed a 2.5x growth in the volume of transactions in the past year. Its restaurant partners base has also grown to 160,000 and more than 10,000 are joining the platform each month.
Some analysts say that it will be very challenging for Swiggy and Zomato, both of which are spending over $20 million a month to win customers, to reach profitability.
More to follow…