“With this investment, we will continue to widen Swiggy’s offerings, along with bolstering our capabilities and plugging the gaps in the on-demand delivery ecosystem,” Sriharsha Majety, co-founder and CEO of Swiggy, said in a statement.
The company said the latest round of funding would help grow its supply chain and enter new markets. Since February, Swiggy has launched its services in Kochi, Coimbatore, Nagpur and Lucknow, taking the total number of cities it operates in India to 15. The company claims it has over 35,000 restaurant partners and a delivery fleet of over 40,000 riders.
The return of investor confidence in India’s online food ordering space is largely being driven by the stickiness of customers that platforms such as Swiggy and Zomato have shown. Even after the bloodbath of 2016 and drying up of funds, which led both players to cut their burn rate, they were still able to attract customers to their platforms to order food.
With the return of capital into the space, experts and industry watchers say there could be a land grab between the top players through major discounting. All players have already slashed delivery costs and are pushing more offers to customers since the start of 2018. UberEats, the newest entrant, is also rapidly scaling up its operations in major metros.
“This infusion of capital, making Swiggy the best-funded food delivery platform in India, ensures that ambitious plans for broadening their platform and expanding their reach across India will be realised,” said Larry Illg, CEO of Naspers Ventures.
Apart from the two marquee investors that led the latest round, Swiggy roped in China’s Meituan-Dianping, which made its debut as an investor in the company in the February round, along with new investor Coatue Management.
Avendus was the financial advisor to Swiggy on the transaction.