Indian food delivery startup
, Swiggy has raised $80 million in Series-E funding. The deal was led by Naspers
, a global internet and entertainment group, with participation from earlier investors Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners participating.
With the new funds, Swiggy aims to propel the next phase of its growth by introducing a suite of new product and service offerings to enhance its customer experience. The startup also announced plans to double its technology headcount and increase investments across core engineering, automation, data sciences, machine learning and personalization.
“In a span of three years, Swiggy has been instrumental in changing the way India eats by delivering delightful customer experiences. This investment by Naspers is further testimony to Swiggy’s vision and performance,” said Sriharsha Majety, Co-founder and CEO, Swiggy.
“As the market leader, we are leveraging our deep understanding of the Indian consumer and the gaps in the market to introduce disruptive and highly differentiated service offerings; making online food ordering and delivery more seamless and reliable to users everywhere,” Majety added.
Ashutosh Sharma, Head of investments, Naspers, India will join the Swiggy board. He believes that Swiggy has shown impressive growth in a highly competitive market.
“Naspers was attracted to the company’s exceptional execution in disrupting online food ordering and delivery in India while many players are struggling. Their ability to create a sustainable business, earning consumer trust through a reliable first-party delivery technology, positions them well for success,” Sharma said.
Naspers is also a key investor in Delivery Hero, a German food delivery business, in which it poured in a $425 million investment earlier this month. With this funding, Swiggy will continue to run the race with competitors like Zomato
whose cloud kitchen model
has caught unawares in the foodtech space.
Food startups in India seem to have been on a roast hit by a slowdown in funding, leading startups like Tiny Owl and Eatlo to shut shops. According to a study done by RedSeer Consulting
, foodtech sector received less than $80 million in 2016 as compared to $500 million funding in the year before, indicating the low investor sentiment in the sector.
Despite this, the order volumes have shown a healthy growth, with coupons and discounts working the best for the startups. As RedSeer Consulting founder and CEO Anil Kumar noted, this fundamental issue of unit profitability and operational efficiencies needs to addressed to build a sustainable business in this sector.