Swiggy’s top investors earn Rs 1,660 crore by selling partial stakes; Naspers top shareholder

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Updated: Jan 16, 2020 8:09 PM

Among the investors who have bought stakes in the company through these secondary transactions were Naspers, Tencent, Hillhouse, Coatur, DST, Wellington Management and China’s delivery platform Meituan Dianping.

Saif Partners made the highest return of Rs 438 crore.

Naspers and Tencent-backed food delivery and discovery platform Swiggy’s earlier and existing investors — Saif Partners, Norwest Venture Partners, Bessemer Venture Partners, Accel Partners and more have been able to make returns worth Rs 1,597 crore ($225 million) by selling parts of their stakes in successive secondary fundraising rounds the company had during FY19, data showed. Swiggy had raised two rounds of funding in FY19 — $210 million around June by DST Global and Naspers along with its international investment unit Prosus and $1 billion in December by Prosus and Naspers during that valued the company at $3.3 billion.

The data shared by business signals platform Paper.vc revealed that Saif Partners made the highest return of Rs 438 crore ($61 million) followed by Rs 401 crore ($56 million) earned by Norwest, $312.8 crore ($44 million) secured by Bessemer, and Rs 178.8 crore ($25 million) by Accel Partners by offloading parts of their stakes. “Over the last financial year, these four key institutional investors have been steadily divesting a portion of their holdings in Swiggy to incoming investors during successive high-value financing rounds,” Vivek Durai, Founder, Paper.vc told Financial Express Online. Other investors included Harmony Partners, RB Investments etc.

“Swiggy has performed tremendously and provided exceptional returns. We have a sold a small percentage of our stake as secondary in Swiggy.  We continue to be bullish on Swiggy’s long term prospects and believe the company continues to have significant potential to grow from here,” Niren Shah, MD and Head of India, Norwest Venture Partners India told Financial Express Online.

Comments from Swiggy, Saif, Bessemer, and Naspers, will be updated as and when received. Accel Partners couldn’t be reached.

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Among the investors who have bought stakes in the company through these secondary transactions were Naspers, Tencent, Hillhouse, Coatur, DST, Wellington Management and China’s delivery platform Meituan Dianping. While earlier press reports had speculated on the conclusion of large secondary transactions but the latest filings vary in certain details. For instance, early investors Harmony Partners and RB Investments continue to be on the cap-table even as “only in 2019 did Prosus (Naspers) managed to increase its holding to 38.82 per cent.,” said Durai. However, Swiggy founders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini made modest returns of Rs 7.1 crore each during FY19.

Despite partial stake sale Accel, Saif and NVP are the second, third, and fourth biggest shareholders in Swiggy with 7.99 per cent, 7.21 per cent, and 6.25 per cent respectively. Naspers had a maximum stake of 38.82 per cent. Founders Majety, Jaimini, Reddy have 5.82 per cent, 2.10 per cent, and 2.63 stakes respectively.

Swiggy competes with Zomato was reportedly valued at $3 billion following its recent $150 million fundraise from Alibaba’s fintech arm Ant Financial. Swiggy has over 1.6 lakh restaurant partners across over 500 cities and has a delivery fleet of more than 2.25 lakh active delivery partners.

(This story was updated with Norwest’s comments)

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