SUMMARY
The round also saw participation from existing investors Meituan Dianping and Wellington Management Company
Swiggy aims to use the funds to further develop its new lines of business, addressing visible gaps in the market
The company will continue to invest in new growth areas such as Stores, Go and SuprDaily
Food delivery giant Swiggy has raised $113 Mn as part of its Series I funding round led by existing investor Prosus N.V. The latest funding round also saw participation from existing investors Chinese local services platform Meituan Dianping and Wellington Management Company.
“Over the last couple of years at Swiggy we have made strong strides in our vision of delivering unparalleled convenience to urban consumers, and in building a fundamentally strong and enduring business while keeping the consumer at the core. We have become synonymous with the exceptional customer experience and created multiple growth avenues for our partners while continuing to invest in new lines of business,” said CEO Sriharsha Majety in the press statement announcing the latest round.
The online food aggregator will be using fresh capital to further develop its new lines of business, addressing visible gaps in the market. The company will continue to invest in new growth areas such as Stores, Go and SuprDaily.
“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. Swiggy has built a solid leadership position in India and is utilizing its strong logistics network and consumer loyalty to expand its offering to services that continue to make consumers lives more convenient,” said Larry Illg, CEO, Prosus Ventures and Food (formerly Naspers Ventures and Food) in a statement.
“We are laser-focused on continuing to execute on our vision while building a sustainable path to profitability,” Majety added.
Swiggy reported total revenue of INR 1292 Cr with total expense of INR 3637.6 Cr and losses of INR 2345.6 Cr for the financial year ending March 31, 2019. Swiggy’s previous $1 Bn round in December 2018 was also led by Naspers, along with China’s Tencent, Hillhouse Capital, and Wellington Management.
Swiggy has invested around INR 150 Cr in setting up Swiggy Pods for multiple cloud kitchens. In November, Swiggy also said that it will be investing an additional INR 75 Cr to bring more partner cloud kitchens in 12 new cities by March 2020.
The food aggregator recently announced that it is tying-up with a few restaurant partners to launch exclusive delivery-only food brands available on the Swiggy BrandWorks platform. Restaurant partners with unutilised kitchen capacities will help Swiggy in co-creating these brands.
