Food delivery app, Swiggy has raised $43 million in its ongoing Series I round lead by its existing investor Chinese internet giant Tencent. Ark Impact Asset Management, Korea Investment Partners (KIP) and MACM India Growth Fund also participated in this round along with Tencent. Series I round was initiated in February this year, with $113 million raised from Prosus NV (previously Naspers), along with Meituan Dianping and Wellington Management Company. This latest round values Swiggy at $3.6 billion which is more than its rival Zomato, which is valued at $3.35 billion in its latest $5 million funding led by Pacific Horizon.
Both the food delivery apps are facing heat of depressed sector, with daily order deliveries dropping 70% to under 1 million a day from the previous 2.5 million a day. Customer’s bad sentiment on hygiene of these apps’ restaurant partners and shutdown of many restaurants amid nationwide lockdown has badly affected business of Swiggy, and Zomato. Thus this funding will provide important boost in current tough scenario and help in expanding their new business to cover the loss of existing one.