Bangalore-based food ordering app, Swiggy, has raised an additional $7 Mn (INR 47 Cr) from its existing investors Norwest Venture Partners, DST Global and Accel Partners.
It raised $35 Mn in Series C round of funding from New York-based investors Harmony Partners and Singapore-based RB investments, in January this year.
According to ROC filings, the new round of funding has valued the startup at $130 Mn (INR 865 Cr). With the newly raised capital, the startup plans to deep dive into its eight operational cities and maintain its market leadership position.
Swiggy was founded in August 2014 by BITS Pilani alumni Sriharsha Majety, Nandan Reddy and IIT Kharagpur graduate Rahul Jaimini. The startup is currently operational in eight cities including Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata, and Chennai with over 5,500 restaurants listed on its platform. It claims that its order value has grown over 20 times in the last few months with an average delivery time of 36 minutes per order.
Related Article: Foodtech Unicorn Swiggy Bags $1 Bn In Funding Round Led By Naspers
Just two days back, the startup achieved a milestone of clocking 1 Mn orders in the month of April, since it started its operations. It said that With 5,500 restaurants in its network, Swiggy got an average of 35,500 orders per day in April, a growth of 25% over the previous month.
At a time when money is tough for the food-tech operators, Swiggy has managed to raise $53.5 Mn in four rounds. In June 2015, it raised $16.5 Mn in Series B round from the Norwest Venture Partners (NVP), SAIF Partners, Accel Partners and from an undisclosed global investment entity. Prior to that, in April (2015) the company had raised $2 Mn from Accel Partners and SAIF Partners.
According to Mukul Arora, principal at SAIF Partners, Swiggy’s offering is differentiated from its competitors, which helps the startup command a higher commission from restaurants and therefore build a sustainable business.
Swiggy offers a live order-tracking within the app which differentiates it to help maintain customer repeat rate and differentiate the ordering experience from its competitors. Swiggy’s mobile app shows 1 Mn downloads and the company claims to have almost 70% of its orders come from the app.
The startup competes with TinyOwl, which yesterday announced that it will merge with the B2B hyperlocal logistics service provider Runnr.
The development was first reported by ET.
Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.