Bangalore-based food delivery start-up Swiggy has raised $16.5 million in Series B from Silicon Valley-based venture capital investor Norwest Venture Partners (NVP).

Existing investors SAIF Partners and Accel Partners along with a global investment entity that did not wish to be identified also participated in the new investment round.

Swiggy, in a statement here today, said that the funds will primarily be used to support the next phase of growth including expanding Swiggy’s footprint to other cities in India.

The financing is also expected to fuel growth towards establishing a stronger brand platform and capturing an increased share of the burgeoning food delivery market in India, it added.

Swiggy recently expanded its operations to Gurgaon and Hyderabad where they have currently partnered with over 100 restaurants in each city in an effort to deliver food around the clock.

Founded by Sriharsha Majety, a BITS Pilani and IIM-C alumnus, Nandan Reddy, BITS Pilani alumnus and Rahul Jaimini from IIT Kharagpur, Swiggy, unlike many other food ordering platforms, has its own fleet of delivery personnel equipped with smartphones powered by intricate routing algorithms, which enables the company to seamlessly pick up orders from restaurants and deliver to customers.

Commenting on the development, Sriharsha Majety, CEO, Swiggy said, “We have seen a 10x growth in order numbers over the past few months and this investment will help us expand exponentially as we intend to establish ourselves in several new cities by the end of the year. Combining technology with our own delivery fleet allows us to provide users a superior experience, which has been our key strength, and we will continue to build on it.”

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