TMT
By
Naspers, Meituan-Dianping deliver fresh capital to Swiggy
Photo Credit: 123RF.com

Food delivery platform Swiggy has raised Rs 805 crore (approximately $112.56 million at current exchange rates) in a round of funding led by South African technology conglomerate Naspers.

Existing investors Hadley Harbour Master Investments and Meituan-Dianping also participated in the round, according to regulatory filings by Swiggy operator Bundl Technologies Pvt. Ltd reviewed by VCCircle.

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

Post this deal, Naspers will hold around 40.56% in Bengaluru-based Swiggy, with Hadley Harbour and Meituan taking a 1.09% and 6.35% stake each in the food-technology company. It remains to be seen if it will raise more capital as part of this Series I infusion.

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 added.

Many early investors in Swiggy have also earned high returns on their investments by selling their shares to other investors. Backers 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).

Swiggy mainly competes with Zomato. Last 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.

Also, that month, Zomato agreed to acquire ride-hailing company Uber Technologies Inc.’s food delivery business in India in an all-stock transaction. The deal gave Uber a 9.99% stake in Zomato. Prior to the acquisition, Swiggy had also reportedly been eyeing UberEats.

Leave Your Comment(s)