Swiggy raises $35 million in Series C funding

Industry:    2016-01-19

Bengaluru-based food delivery startup Swiggy on Monday said it has raised $35 million (about Rs 230 crore) in Series C from existing investors SAIF Partners, Norwest Venture Partners, Accel Partners and new investors Harmony Partners, RB investments and an undisclosed global investment entity. The new round comes six months after it had secured $16.5 million in Series B round of funding. The funds will be utilised to consolidate Swiggy’s presence in the existing markets, said co-founder Nandan Reddy. Apart from investment in top quality leadership, the funds will be used for technology upgradation focusing on deeper vendor integration, reducing overall delivery time and cost and, enhancing customer experience. “We’re well capitalised and the fund-raise will help us to consolidate the market in the next two years,” Reddy added. Currently, Swiggy is present across eight cities including Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata and Chennai and has 5,000 restaurants listed on its platform. Swiggy claims its order count has grown more than 20 times in the past few months. Recently, the food technology startup space in India has been on a cost-cutting spree that has led to some shutting down shops and laying off staffs. While food tech startups like Dazo and Langhar had to wrap up their businesses, even the majors like TinyOwl, Zomato and FoodPanda had to scale down their businesses owing to reasons like failed business models and fund crunch. “We believe that Swiggy is on track to become one of leading consumer internet companies in India and are really excited to partner them in this journey,” said Mukul Arora, Principal, SAIF Partners. “While our focus will continue to be growth across all geographies, we will now concentrate on profitability and sustainability in established markets. The end goal is to revolutionize the way India eats. We are looking to surpass existing standards, set higher benchmarks and delivering over one million orders a month in the near future,“ said Sriharsha Majety, chief executive officer and co-founder at Swiggy.

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