Swiggy’s existing investors, which include Accel India, SAIF Partners and Norwest, also participated in the financing round which takes its total capital raised to nearly $76 million.
The funding will be used by Bengaluru-based startup to improve customer experience which includes “technology upgrades, a wider spread of restaurants to choose from and better delivery efficiency.”
ET was the first to report in its June 22 edition that Bessemer is in advanced talks to invest $12 million or Rs 80 crore in Swiggy. The deal has valued the two year old venture at around $200 million (Rs 1,350 crore).ET also reported earlier this month that Swiggy has seen interest from strategics like Amazon India for an investment.
The money will help Swiggy compete strongly with restaurant listing company Zomato, which entered food delivery business last year, as well as the Nexus Venture Partners-backed RoadRunnr-TinyOwl combine and Rocket Internet portfolio company Foodpanda.
Swiggy was founded by Sriharsha Majety, who teamed up with BITS-Pilani college mate Nandan Reddy, and IIT-Kharagpur graduate Rahul Jaimini in August 2014.
Swiggy said to fuel its next phase of growth it has hired vice presidents across functions like marketing, product, HR, design and finance. “In the months to follow, Swiggy will continue to focus on consolidation and capturing a larger share of the market under the guidance of the new VPs,” said the statement.
Swiggy currently does over 40,000 orders a day, and has partnered with 9,000 restaurants across 7 cities it is present in.
Online penetration within the takeout segment was only 2% in India while it was 20-30% in China, the United Kingdom and Canada, according to Morgan Stanley report in February. The investment bank estimates that the online food aggregation business can grow from almost nothing in 2014 to $4.4 billion in 2020.
“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,” said Vishal Gupta, MD at Silicon Valley headquartered venture capital firm Bessemer.
The firm has invested in Internet companies like classifieds portal Matrimony, online marketplace Snapdeal and grocery e-tailer Bigbasket in India.
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