Plans to double technology headcount and introduce a suite of new product and service offerings to enhance customer experience as it consolidates its market leadership position
Homegrown food delivery startup Swiggy has raised $80 million in series-E funding in a round led by Naspers, a global internet and entertainment group. Other investors participating in this round included earlier investors Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners. Ashutosh Sharma, head of investments in India for Naspers will join the Swiggy board.
With these funds, Swiggy plans on introducing a suite of new products and services. It also plans to double its technology headcount and increase investments across core engineering, automation, data sciences, machine learning and personalisation.
“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,” said Ashutosh Sharma, head of investments in India, Naspers.
Swiggy says that it saw a six-fold growth in revenues over the last year. While FY17 numbers are not available, it earned a revenue of about four million dollars in FY16, but its losses grew nearly 65-fold in that fiscal.
“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. 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,” said Sriharsha Majety, co-founder and CEO, Swiggy.
Swiggy currently has its presence across eight locations in India, including Delhi-NCR, Mumbai, Pune, Hyderabad, Kolkata, Bengaluru and Chennai and has over 12,000 restaurants on board.
The food delivery space has recently been seeing some action with UberEATS entering India. There have also been reports that Zomato is in talks to acquire delivery startup Runnr.