Bengaluru based online food delivery platform Swiggy raised $100 million in its latest round of funding, with the round led by Naspers and Meituan-Dianping. In its fourth year, the deal has upped Swiggy’s valuation from around $400 million last year to approximately $700 million.
Swiggy, which began operations in August 2014 has so far raised a total of $255.5 million, with this being the biggest round of funding so far.
Swiggy is likely to use this investment to expand operations, in addition to plugging any gaps in its operations. The investment could also help it extend its lead over closest rival Zomato, which recently received a funding of $200 million recently.
Naspers, which has its headquarters in Cape Town has previously invested in other Indian companies like Flipkart, GoIbibo, OLX, MakeMyTrip, etc. It primarily invests in technological companies, with a presence in over 120 countries.
Meituan-Dianping, on the other hand is the leading player in China’s food delivery segment, with the company valued at $30 billion. The company has over 280 million users in China and could help Swiggy scale up in India.
Swiggy is currently operational in 10 Indian cities, having launched operations in Jaipur earlier this month. It currently delivers food in Bengaluru, Jaipur, Mumbai, Chennai, Pune, Delhi-NCR, Ahmedabad, Kolkata, Chandigarh, and Hyderabad. The company currently handles around 1.4 lakh orders daily, around 40 per cent more than rival Zomato.
The food delivery segment has seen tremendous competition of late, with the likes of Uber and Ola joining the bandwagon. While Ola recently acquired Foodpanda, Uber uses its UberEATS platform. New entrant Deliveroo, which is valued at $2 billion is likely to enter the market soon. It is estimated that this segment could be valued in the range of $2.5 and $3.5 billion over the next three years.