 "Swiggy raises additional $43 million as part of ongoing funding round")
Online food delivery firm Swiggy has raised an additional amount of $43 million as part of its ongoing Series ‘I’ round, which saw participation by existing investor Tencent and new investors such as Ark Impact, Korea Investment Partners, Samsung Ventures and Mirae Asset Capital. Including this fresh funding, the Bengaluru-headquartered company has raised $156 million under this round.
According to the sources, the post-money valuation of Swiggy has gone up marginally to $3.65 billion as compared to $3.5 billion that it was valued at this February when it raised $113 million from existing investor Prosus NV, and from Meituan Dianping and Wellington Management Company.
“Swiggy has built a sustainable food delivery business over the years while solving various customer pain points. As we continue to strengthen and expand our services that offer unparalleled convenience to our consumers, we are humbled by the faith shown by our investors, year-on-year, and welcome the new investors on board. Our focus remains to execute on our vision while building a sustainable path to profitability,” said Rahul Bothra, CFO, Swiggy.
Having grown beyond food delivery, Swiggy aims to use the funds to further develop its new lines of business, addressing visible gaps in the market, according to the industry sources. The company will continue to invest in new business verticals such as Stores, Go and SuprDaily.
The fresh funding comes after the Bengaluru-based company’s rival Zomato bought ride-hailing firm Uber’s food delivery business in India in an all-stock deal early this year. In January Zomato had also raised Rs 353.58 crore from Antfin Singapore Holding Pte. Ltd, an existing shareholder in the company.
The online food ordering and delivery market is expected to grow at a compounded annual growth rate of over 45 per cent to reach $11 billion in gross merchandise value (GMV) by 2023, according to RedSeer Consulting, a research and advisory firm.
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