Swiggy raises $43 million to expand new businesses

Ark Impact, Korea Investment Partners and Mirae Asset Capital Markets also took part in the round, along with other existing investors.

Swiggy had earlier raised $113 million, led by existing investor Prosus NV along with participation from Meituan-Dianping and Wellington Management Co., in the Series I round, which was initiated in February this year.

The latest investment takes Swiggy’s total round size to $156 million, valuing the company at over $3.6 billion.

“Swiggy has built a sustainable food delivery business over the years while solving various customer pain points. As we continue to strengthen and expand our services that offer unparalleled convenience to our consumers, we are humbled by the faith shown by our investors year-on-year and welcome the new investors on board. Our focus remains to execute on our vision while building a sustainable path to profitability,” Rahul Bothra, chief financial officer, Swiggy, said in a statement.

Having expanded beyond food delivery, Swiggy aims to use the funds to develop new lines of business and address visible gaps in the market. The company will continue to invest in new growth areas such as Stores, Go and SuprDaily.

Swiggy’s transaction numbers grew nearly 2.5-fold in this past year. The restaurant base has also grown four-fold to more than 160,000 partners with more than 10,000 new restaurants being added every month. The platform currently has more than 250,000 delivery partners across 520 cities.

The funding announcement comes at a time when food delivery platforms such as Swiggy and Zomato are facing severe disruptions in their business due to the three-week nationwide lockdown announced by the government to contain the spread of the coronavirus.

Last week, Zomato had raised $5 million from Pacific Horizon Investment Trust, taking its valuation to $3.25 billion post the round.