Swiggy has raised Rs 263.56 crore ($35 million) from a clutch of investors as part of its ongoing Series I investment round.
Swiggy has raised Rs 263.56 crore ($35 million) from a clutch of investors as part of its ongoing Series I investment round, according to the company’s RoC filings sourced from business signals
The fresh funding round was led by Netherlands-based Tencent Cloud Europe BV with `142.48 crore. South Korea-headquartered Ark Impact Asset Management is investing `71.23 crore through two separate entities, South Korea’s KIP Re-Up Fund is investing `35.60 crore and MACM India Growth Fund is putting in `14.23 crore in the Bengaluru-based online food delivery firm, the documents showed.
The latest investment will take Swiggy’s total fund count to nearly $1.64 billion. The fundraising comes at a time when companies across sectors have been battered by the impact of the novel coronavirus. As per industry estimates, at least 25% of domestic start-ups will shut down due to Covid-19.
In February, Swiggy raised $113 million from existing backers Naspers, Wellington Management and Meituan Dianping as part of its Series I funding round.
According to industry observers, the funds will be used by Swiggy to build its food delivery and cloud kitchen business. The firm, which competes with Gurgaon-based Zomato, had raised a whopping $1 billion in December 2018, led by Naspers that valued it at an estimated $3.3 billion.
Swiggy’s losses ballooned to `2,345.6 crore in FY19 from `384.9 crore in FY18.
Analysts estimate food delivery firms’ monthly operating cash burn to be about $30 million.
Data sourced from market research firm Kalagato showed Swiggy delivered 45-49 million orders as of December 2019 compared with Zomato’s 32-36 million.