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Early investors in Swiggy take home $222 mn in partial exits
Photo Credit: VCCircle

Many early investors in Swiggy have earned high returns on their investments in the online food delivery startup by selling their shares to other investors, according to an Entrackr report.

Early investors such as SAIF Partners, Accel, Norwest Venture Partners, RB Investments, Harmony Capital and Bessemer Venture Partners have collectively earned around $222 million (Rs 1,579.2 crore), the report said, citing Swiggy’s regulatory filings.

These investors sold their shares to late-stage investors such as Naspers, DST Global, and Coatue PE Asia, the report added.

VCCircle has reached out to Swiggy on this development and will update this report accordingly.

The early investors have steadily reduced their stakes in Swiggy over the last financial year, said Vivek Durai, the founder of business intelligence platform Paper.vc, according to media reports.

He said early investors Harmony Partners and RB Investments still have some take in Swiggy. Prosus—the firm to which Naspers transferred many of its technology portfolio companies-- increased its stake in Swiggy to 38.82% in 2019.

“Prosus was not the only buyer - other stake acquirers included Tencent, Coatue, Hillhouse, Wellington Management, DST and Chinese delivery platform Meituan Dianping,” Durai said.

The development comes nearly six months after reports said the online food delivery startup was in advanced talks to raise up to $750 million (around Rs 5,196.5 crore) in a round of funding to be led by existing investor and South African conglomerate Naspers at a valuation of $4 billion.

According to the reports, Naspers was likely to pump in half this amount, with the remaining being raised from other existing investors.

Swiggy previously raised $1 billion at a valuation of $3.3 billion. According to industry estimates, Swiggy clocks 900,000 to one million daily orders, and burns close to $40 million every month, the report mentioned.

Bengaluru-based Swiggy, operated by Bundl Technologies Pvt. Ltd, competes with firms such as Zomato and UberEats. Earlier this month, Zomato raised $150 million (around Rs 1,067 crore) from existing investor Ant Financial, the payments affiliate of Chinese e-commerce conglomerate Alibaba Group Holding Ltd. The primary capital was raised at a pre-money valuation of $3 billion.

Reports last month suggested that Zomato was in advanced talks to buy UberEats and that ride-hailing firm Uber would infuse fresh capital of up to $200 million (around Rs 1,419 crore) in the combined company.

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