Naspers leads $80m round India's VC-backed Swiggy
South African internet conglomerate Naspers Group has led a Series E round of funding worth $80 million for Swiggy, an India-based online food-ordering and delivery platform.
Existing investors including Accel Partners, SAIF Partners, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners also participated in the round. The capital will help Swiggy build out its business with a view to becoming the market leader in its segment in India.
The company was founded in 2014 and claims to have attracted more than 12,000 restaurants to its platform, with revenue growing six-fold over the past 12 months. It boasts an average delivery time of 37 minutes per order and currently operates in eight cities. However, Swiggy is still understood to operate at a loss due to subsidies offered to consumers and restaurant partners in a bid to win market share.
“Swiggy has shown impressive growth in a highly competitive market,” said Ashutosh Sharma, head of investments in India for Naspers, in a statement. “Naspers was attracted to the company’s exceptional execution in disrupting online food ordering and delivery in India while many players are struggling. Swiggy’s ability to create a sustainable business, earning consumer trust through a reliable first-party delivery technology, positions it well for success.”
Total capital raised by the company to date is around $155 million. Swiggy received a $15 million Series D round led by Bessemer in September of last year. It also featured existing backers Norwest, SAIF and Accel, which took part in a $35 million Series C in January of the same year. SAIF and Accel have backed Swiggy from the outset, while Norwest joined at the Series B stage.
Swiggy's competitors include Zomato, which AVCJ Research’s records show has received nearly $200 million since 2013, and Food Panda, a start-up incubated by Rocket Internet but since sold to Delivery Hero. A number of food delivery start-ups in India have struggled, resulting in layoffs and several operators going out of business.
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