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Food delivery app Swiggy has raised $35 million in Series C round of funding from New York-based investors Harmony Partners and Singapore-based RB investments. Existing partners, including SAIF Partners also partcipated in this round. The Bengaluru-based start-up was advised by Mumbai -based Avendus Capital on the latest transaction.
The funds will be to consolidate Swiggy’s position as a market leader and to capture a larger share of the burgeoning $15 billion food delivery sector in India. Apart from investment in top quality leadership, the funds will be used for technology upgradation focusing on deeper vendor integration, reducing overall delivery time and cost and, enhancing customer experience.
Swiggy is now present in 8 cities – Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata and Chennai with over 5,000 restaurants listed on its platform. Apart from the existing array of brick-and-mortar restaurants on the platform, it has recently begun integrating cloud kitchens to enable a wider choice for users. In response to customer preferences and evolving habits, two new initiatives from Swiggy include an in-house cloud kitchen platform as well as the option for customers to pre-order meals.
Swiggy was founded by Sriharsha Majety, a BITS Pilani and IIMC alumnus, Nandan Reddy, BITS Pilani alumnus and Rahul Jaimini from IIT Kharagpur. Swiggy is the first and only food ordering platform with its own fleet of delivery personnel to pick-up orders from neighbouring restaurants and deliver them to the customers. These executives are equipped with smartphones powered by complex routing algorithms.
Swiggy order value has grown over 20 times in the last few months with an average delivery time of 36 minutes per order.
Sriharsha Majety, CEO, Swiggy, said, “We believe that our growth and success are a result of our customer-centric approach. Our enormous growth, high percentage of repeat customers is testimony to the fact that we strive to constantly outdo ourselves in terms of customer satisfaction. While our focus will continue to be growth across all geographies, we will now concentrate on profitability and sustainability in established markets. The end goal is to revolutionize the way India eats. We are looking to surpass existing standards, set higher benchmarks and delivering over 1 million orders a month in the near future. “
“Swiggy offers a strong value proposition for both customers and restaurants and is transforming the way people eat in India,” said Sumer Juneja, Director, Norwest Venture Partners. “We have been exceptionally impressed with the execution of the team, particularly over the last few months in which they have expanded service to 8 new cities and made investments in superior talent, while continuously improving customer experience and delivery times. We are excited to continue to be part of Swiggy’s story and working with its visionary founders and management team.”
“After analyzing the consumer landscape in India, it quickly became clear to us that Swiggy is the food delivery company that is best positioned to win given their focus, execution, and long-term vision,” said Michael Chou, Partner at Harmony Partners. “Their growth is very strong, but moreover Swiggy provides a much better experience to customers and restaurants, the two key stakeholders in the ecosystem. We are very excited to partner with them and help broaden their lead.”
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