At a time when most food delivery startups(or all startups, in general) are under a funding crunch, Swiggy has managed to pickup another $15 million in Series D for its food delivery service. This transaction which now values the company at $200 million, was led by US-based Bessemer Venture Partners.
This round of funding also saw participation from existing backers, including Accel India, SAIF Partners and Norwest. This latest investment comes at the heels of a $35 million Series C round which also saw interest from existing and new investors, New York-based Harmony Partners and Singapore-based RB in January. Swiggy has now raised a total capital of about $75.5 million till date.
The fresh influx of funds will be used by the food-delivery startup to fuel its next growth phase, alongwith an emphasis on improved customer experience. This will also include infusion of money into technology upgrades, a wider spread of restaurants to choose from, and better delivery efficieny for its customers.
Commenting on the the addition of more funds to its coffers, Sriharsha Majety, Co-founder and CEO, Swiggy, said,
We are excited about the funding as this is a validation of our performance and recognition of our leadership, in addition to being testament to the tremendous potential of the food tech sector. Our strong growth in the last few months shows that our customers are increasingly becoming accustomed to a new behaviour of ordering food for the experience, rather than only for convenience.
In addition to focusing on technology and customer experience, Swiggy’s next growth phase also sees the addition of new execs in the senior leadership. The company has recently hired vice presidents across the following functions – marketing, product, HR, design and Finance. These leaders, as the press release states, have nurtured high-growth companies in the past, and will be instrumental in shaping the strategy and maintaining the company’s leadership position in a fast growing food-tech category.
Commenting on their investment in Swiggy, Vishal Gupta, Managing Director at Bessemer Venture Partners, said,
We are excited to partner with Swiggy. Swiggy’s full stack approach coupled with great execution has resulted in unparalleled customer experience, retention and business economics. We look forward to working with Sriharsha and the management team as they further cement Swiggy’s leadership position in the India market.
In the months to follow, Swiggy will continue to focus on consolidation and capturing a larger share of the market under the newly added guidance. It will also undertake new initiatives to constantly evolve and address the growing needs of different consumer segments.
Since its inception in 2015, Swiggy has rapidly grown to take the fight to some of the big names(ahem, Zomato!) in the food-delivery space by contantly working to improve customer experience and reduce delivery times. The company is currently recognized as the fastest food-delivery service, with an average time of 37 minutes.
The company has recently partnered up with third-party delivery services including, Shadowfax Technologies Pvt. Ltd to deliver some of its orders in Bengaluru and Delhi. It is also in talks with Opinio (Moonshots Technologies Pvt. Ltd) to expand delivery options in Bengaluru. The food delivery service has recently also been embedded into Google Search to let you order food natively from the search results.
Founded by Sriharsha Majety and Nandan Reddy, along with ex-Myntra developer Rahul Jaimini, Swiggy started its operations in August 2014. The Bangalore-based startup is currently operational in eight cities — Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata and Chennai — with some 5,000 restaurants on its platform. It claims to be delivering 20,000 orders, with a growth rate of 25 per cent every month. The company is now aiming to register a seven-fold increase in business from the eight cities it is operating in.