Online food tech platform Swiggy raises $43 million in its Series I round

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.

Both Zomato and Swiggy has ventured into grocery delivery, with Zomato opening its “Zomato Market” recently. On the other hand Swiggy which runs its “Swiggy Stores”, launched in February, 2019, has expanded its grocery delivery to many cities. Both companies are collaborating with food manufacturers to quickly expand their grocery delivery by exploiting their vast distributor chain, recent one being tie up with Marico for launching Saffola store.