Swiggy Raise $50 Million: Swiggy is discussing an investment of $50 to $60 million with potential investors. The Bengaluru-based food startup currently is in talks with two major investors. The reported names are Naspers Ltd, the South African media company and Fosun International Ltd, a Chinese Conglomerate. The fresh funding round may also include the existing investors.
As an anonymous source quoted, “Swiggy has ample cash in the bank, but they want to strengthen the war chest further. With this round, they will get some financial cushion. The existing investors are likely to pool in at least $20 million.” Swiggy and Naspers both haven’t commented on the authenticity of the news.
Swiggy raised at least of $75 million in several rounds from Accel Partners, Bessemer Venture Partners, Harmony Partners, RB investments, Northwest Venture Partners, SAIF Partners, and Apoletto. Apart from that, Swiggy also raised $8 million in venture debt from InnoVen Capital.
The biggest competition for the startup comes from Zomato, Foodpanda India, Runnr which is a merge of TinyOwl and Roadrunnr.
Food startups have been the biggest victims of fund slowdowns. They were compelled to refrain for further expansion and try attracting customers with various offers. Swiggy reported a 65-fold rise in losses for the fiscal year ending in March 2016. Revenue rose to Rs.23.59 lakh a year in the last fiscal year. Losses have peaked up to Rs137.18 crore from Rs2.12 crore. Swiggy spent about RS13 crore per month last fiscal year.
Owing to lesser average order values in India, the food delivery companies charging 10-20 percent of the order value end up in a loss for every delivery. Swiggy charges additional Rs50 for orders less than Rs250 just to be sure. This makes the company secure from loss and also take the average order value a notch up, as the co-founder and CEO Sriharsha Majety mentioned in 2015.
Swiggy is one of the leading the Indian food startups second only to Zomato which raised a whopping $224 million. Currently the startup functions in Bengaluru, Mumbai, Chennai, Delhi, Pune, Gurugram, Hyderabad, and Kolata. They even pilot their own kitchens in Bengaluru. If Swiggy cracks this deal (Swiggy Raise $50 Million), it will compete better with its biggest rival Zomato.