Korean investors contribute $43m to India's Swiggy

Existing investor Tencent Holdings also contributed capital, according to Indian media outlets that cite Indo-Asian News Service (IANS). It marks the close of a Series I funding round that launched earlier in the year. The round was led by Prosus Ventures, the Euronext-listed investment firm formerly known as Naspers Ventures & Food.

It brings total capital committed to the start-up to more than $1.63 billion. Other investors in Swiggy include Coatue Management, DST Global, Hillhouse Capital, Accel Partners, Bessemer Venture Partners, Harmony Partners, Norwest Venture Partners, and SAIF Partners.  

Founded in 2014, Swiggy is said to be marginally ahead of its rivals in the Indian food delivery ecosystem. The funding is expected to contribute towards plans to expand the provision of new services like grocery delivery and intra-city courier services.

"We continue to strengthen and expand our services that offer unparalleled convenience to our consumers," said Rahul Bothra, Swiggy’s CFO, according to IANS. "Our focus remains to execute on our vision while building a sustainable path to profitability."  

Due to the 21-day countrywide lockdown imposed by the Indian government to slow down the spread of coronavirus, restaurant closures and disciplinary action by local police against delivery workers has hampered Swiggy’s operations of late. The app is not operational in many cities. 

Swiggy claims to have a 160,000-strong restaurant base. As of October, Zomato, Swiggy’s main rival, claimed to have 150,000 restaurant partners. Both companies earn revenue through commissions on orders, service fees for low-value transactions, higher prices during peak hours, paid membership programs, renting cloud kitchens to restaurants, and selling branded food items.

Earlier this year, Zomato acquired Uber India’s food delivery arm in an all-stock deal.  

Swiggy, like many other start-ups, has launched crowdfunding drives to help raise funds to support urban migrant workers in the informal sector who returned to their villages. The lockdown has led to reduced income-earning opportunities or loss of work for millions of Indians working in the cities. Swiggy also has crowdfunding initiatives to support its fleet of delivery agents, most of whom are not on full-time contracts.

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• Topics
• South Asia
• Expansion
• Technology
• India
• TMT
• Korea Investment Partners
• Mirae Asset Private Equity
• Samsung Venture Investment
• Ark Impact