Swiggy, the Bengaluru-based food delivery application raised funds equal to $210 million in a recent funding round led by Russian venture capitalist Yuri Milner’s DST Global and Naspers, a leading global technology investor. The funding round also saw participation by hedge fund Coatue and Meituan Dianping, a voucher-selling internet company. The financial advisor to Swiggy for the funding round was Avendus.
Post Swiggy’s $210 million funding round, the company is valued at $1.3 billion, giving it an entry into the unicorn club. Companies that are valued above $1 billion get the unicorn club tag.
Including the funds raised in the recent round of funding, Swiggy has raised more than $466 million. The CEO of Swiggy, Sri Harsha Majety said that the company plans to offer more services, boost the company’s capabilities, and improve the delivery system. The delivery app also plans to expand its supply chain network, enter new markets, and boost the headcount with focus on the technology department.
Swiggy is all set to take on the battle with Zomato, and new rivals like Ubereats and Foodpanda. Zomato, the Gurgaon-based delivery app raised $200 million in a funding round led by Ant Financial, Alibaba’s payment affiliate. Alibaba is an online retailer in China. Zomato is valued at $1.1 billion at present.
Swiggy entered the club in less than 4 years since its inception while Zomato took nearly double the amount of time to be valued at more than $1 billion. According to industry sources, Swiggy receives the 11 million orders in a month, which is the highest among its competitors. Zomato has the second highest number at 7 million.
Swiggy operates in 15 Indian cities like Bengaluru, Mumbai, Delhi, Hyderabad, and so on. The number of partnered restaurants is estimated at 35,000 and the delivery personnel headcount is more than 40,000.
Source: Economic Times and Live mint