Swiggy raises $113 million from existing backers; firm valued at $3.4 billion

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Published: February 20, 2020 3:15:54 AM

The investment is part of the Bengaluru-based food delivery firm's Series I round of financing. The latest fund-raising takes Swiggy's total fund tally to close to $1.61 billion.

Swiggy delivers about 42 million orders per monthSwiggy delivers about 42 million orders per month

Swiggy is raising $112.70 million from existing backers Naspers, Wellington Management Company and Meituan Dianping, according to the company’s RoC filings sourced from business signals platform paper.vc. Swiggy’s valuation post this round of funding is estimated at $3.4 billion, according to calculations by paper.vc.

The investment is part of the Bengaluru-based food delivery firm’s Series I round of financing. The latest fund-raising takes Swiggy’s total fund tally to close to $1.61 billion.

Swiggy had last raised $1 billion in December 2018, led by Naspers of South Africa that valued the firm at an estimated $3.3 billion.

With the current investment, Naspers continues to remain the largest shareholder in Swiggy, holding 40.56% on a fully diluted basis, analysts at paper.vc said.

The recent funding comes close on the heels of Zomato acquiring UberEats India. Zomato has claimed this acquisition will “significantly strengthen” its position in the food delivery category. Zomato and Swiggy that jointly command nearly 90% of the food delivery market are locked in an intense competition to grab a bigger pie of the burgeoning market. India’s food tech market is estimated to touch $7.5-$8 billion by 2022 from about $3.5-4 billion in 2019, according to a recent report by Google-BCG (Boston Consulting Group).

While Swiggy delivers about 42 million orders per month, Zomato delivers around 40 million orders, according to analysts.

“This investment is part of Swiggy’s plan to raise up to $1 billion for its food delivery and cloud kitchen business,” said Sonia Pradhan, founder at paper.vc.

Launched in 2014, Swiggy has expanded to over 450 cities. Of late, the company has also extended its services to newer segments like on-demand delivery and home-style meal subscription. Zomato delivers in over 500 cities.

Swiggy’s losses ballooned to Rs 2,345.6 crore in FY19 from Rs 384.9 crore in FY18. Analysts estimate food delivery firms’ monthly operating cash burn to be about $30 million.

While Naspers has routed its investment via MIH India Food Holdings, Wellington Management has invested through Hadley Harbor Master Investors (Cayman) II and Meituan Dianping via Inspired Elite Investments, documents showed.

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