Swiggy funding

Bengaluru-based hyperlocal delivery platform Swiggy has secured $800 million in funding. According to the Registrar of Companies (RoC) filing by the company, the round was led by Amansa Capital, Carmignac, Think Investments, Falcon Edge, and Goldman Sachs. 

While Swiggy declined to officially comment on the funding, a source verified the company’s valuation to be $5 billion following the funding. The round also witnessed participation from Singapore’s GIC and Qatar Investment Authority. Existing investors – Accel Partners and Prosus Ventures also participated in this round of funding. 

Swiggy was established in 2014 by Nandan Reddy, Sriharhsa Majety, and Rahul Jaimini. It gained unicorn status in December 2017 and has more than 1,30,000 delivery partners (the foodtech startup had 2,20,000 delivery partners before the pandemic). Rahul no longer plays an operational role at Swiggy.

Swiggy was operational in 50 cities by the end of 2018, grew to 100 cities by March 2019, and then to 500 cities by December 2019. In March 2015, Swiggy was recording one million orders per month; this reached four million per month by July 2017, 14 million a month in May 2018, 21 million per month in September 2018, and a whopping 30 million orders per month in January 2019. 

Genie, its new Dunzo-like feature that services any kind of delivery anywhere, is now available in 65 cities. Instamart, the grocery delivery platform, is operational in two cities; and HealthHub, which focuses on health foods, is available in four cities. 

On average, Swiggy, which competes with the likes of Zomato and Dunzo, finishes about 1.45 million orders in a day. This fundraise comes close to Zomato’s funding of $660 million in December 2020. Zomato is on the way to an IPO and is also planning to raise an additional $140 million. 

The pandemic and consequent lockdowns led to a fall in food delivery orders in March 2020, but the additional businesses of Genie and Grocery (now Instamart) had roped in 100 million orders till October 2020.

The lockdown pushed several restaurants to permanently shut down due to the immediate drop in dine-ins. However, as the country began slowly unlocking, Swiggy started observing a hike in new restaurants. It is presently onboarding 7,000+ restaurants every month, with the current count surpassing one lakh. 

With this fundraise, the battle between the two unicorns — Swiggy and Zomato — simply becomes more aggressive.

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