Online food delivery is a highly competitive space with probably the highest shutdown rate among the startups. Funding is almost indispensable to sustain their businesses in the long run.
Online food delivery app Swiggy today announced that it has raised $100 million in Series F funding, its largest round yet. Led by Naspers, a global internet and entertainment group, and one of the world’s largest technology investors, the Series also includes new investor Meituan-Dianping, China’s largest service e-commerce platform.
With this new funding, Swiggy will be equipped with the much-required fuel to fight its rivals such as Foodpanda which was acquired by Ola in December last year. Under the agreement, Ola has committed to invest $200 million in foodpanda India. In June, Uber too launched its food delivery vertical UberEATS starting in Mumbai, and now available in Gurugram, Bengaluru, Chennai, Chandigarh, Delhi, and Hyderabad.
Swiggy said in a release that it will further strengthen its market leadership position by introducing a host of unique and advanced products and services. As part of its long-term strategy of solving for existing supply gaps in the marketplace, Swiggy will also make investments in its New Supply business line. After the successful launch of its first New Supply initiative, ‘Swiggy Access’ last November, the new capital will be used for further expansion.
Swiggy said it will continue to innovate in its core technology platform, especially in the areas of data-driven self-learning systems that leverage machine learning and artificial intelligence. The company will build on its adaptive, real-time prediction and optimisation systems to further improve consumer choice and personalisation, along with speed, volume and efficiency of deliveries.
“With this funding, we will further invest in building differentiated offerings, plugging the white spaces in the ecosystem, and developing our technology while keeping superlative customer experience at the core,” said Sriharsha Majety, CEO, Swiggy.
Since the last round of funding, Swiggy has introduced a slew of new initiatives like Swiggy Access, long-distance deliveries and Capital Assist to help restaurants serve consumers in new and more powerful ways. The company also strengthened its senior leadership with several additions to the team including those from the recent acqui-hire of gourmet food startup 48East. The top-rated food app also underwent a revamp, making it more intuitive and personalised to each consumer, enabling a great food ordering experience. Swiggy has posted a record increase of 500 percent in revenues in the last financial year and saw order volumes nearly double since its previous funding in May 2017.
Over the last three years, Swiggy said it has steadily leveraged its understanding of the Indian consumer to identify market gaps and introduce disruptive and differentiated service offerings. Swiggy claims its average delivery time is an industry benchmark of under 35 minutes. Currently Swiggy is present across eleven locations in India, including Delhi, NCR, Mumbai, Pune, Hyderabad, Kolkata, Bengaluru, Chennai, Ahmedabad, Jaipur and Chandigarh.