Business

Swiggy bulks up with a $1 billion investment led by Naspers

Swiggy, a startup founded in 2014 has cracked the Indian market. The food delivery app started with just five delivery guys and now they have lost the count of delivery fleets they have. The rise is unimaginable. A humble beginning to what has turned out to be one of the biggest food delivery companies in India. Swiggy has numbers and customers on its side and it has been leading the way for a long time now.

It has rivaled with Zomato for almost three to four years now. Zomato since entering the food market has grown rapidly but has not been able to catch Swiggy. Swiggy has managed to come out unscathed from the food-tech battle. There were sudden entries in the industry. UberEats came with a huge kitty, Ola bought Foodpanda and Zomato was always there, amongst all this Swiggy was up there with itself.

Swiggy has been the number one food delivery app in India since there were rankings in this business. They have expanded to a great extent in the last 18 months. Swiggy was active in eight major cities but is now available in 50 cities all over the country. It has around 50000 restaurants as partners. This number was down to 35000 six months ago. The 42 cities it expanded to, were mostly tier 2 and tier 3 cities. It was always looking to expand into the more sophisticated market which is huge. Its Gross Merchandise Value (GMV) has doubled in the last year or so.

Not only this, Swiggy turned into a unicorn as recently as June. Funding worth $210 million helped them past $1 billion in valuation. Swiggy is now behind Paytm, Ola, and Byju’s in terms of valuation. This comes after a humongous funding round that finished earlier today. Naspers Ltd and Tencent Holdings Ltd were a couple of major investors in this Series H funding.

The investment is worth a staggering $1 billion. This investment has taken Swiggy’s valuation to $3.3 billion which makes them fourth biggest startup in India. This investment is going to spark the new era for Swiggy. According to reports, it is going to funnel the money in hiring talent and improve in the areas like machine learning. Improvements in Artificial Intelligence is something which will help Swiggy in bettering its food-delivery tech as well. The company also wants to get their ‘Access’ feature to the next level with this.

It is also looking to target the delivery-only kitchens under the Access option. There is still more room to add more quality food brands. This investment is the largest investment in a food-based company outside of China. Naspers and Tencent have trusted Swiggy to do even better as it has increased its base by ten times since Naspers last visited the country and looked at Swiggy. There were a lot of shares purchased from existing investors to initiate this investment.

– Unmesh Phule

 

 

 

 

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