Swiggy banks $43m from Tencent, Samsung, others

Competition in India’s food delivery scene continues to heat up, with large sums of cash backing startups in the space.

Now, Bengaluru-based Swiggy has announced that it has raised US$43 million as part of its series I fundraise, bringing the size of the round to US$156 million.

Existing investor Tencent, as well as new investors Ark Impact, Korea Investment Partners, Samsung Ventures, and Mirae Asset Capital Markets participated in the latest top-up, a spokesperson for Swiggy told Tech in Asia.

Photo credit: Swiggy

The development marks the food delivery startup’s second major raise this year. In February, it secured US$113 million in series I money in a round led by Prosus Ventures. China’s Meituan Dianping and US-based Wellington Management Company also chipped in.

The startup previously said it will use the funds to expand into new lines of business, including cloud kitchens and new categories for its on-demand services.

Swiggy rival Zomato has also been arming itself with capital, bagging US$150 million earlier in January from Jack Ma’s Ant Financial.

After less than two weeks, it announced it had acquired Uber Eats in India, increasing its reach. According to a Bloomberg report, the deal could see Zomato hitting monthly food orders of up to 50 million, up from its usual 40 million.

Most recently, the restaurant discovery app reportedly secured US$5 million from UK-based Pacific Horizon Investment Trust, a fund managed by investment management firm Baillie Gifford. Its valuation is said to have reached US$3.3 billion, close to Swiggy’s US$3.6 billion.

Both Zomato and Swiggy have also recently ventured into online grocery delivery as the Covid-19 pandemic continues to cut down demand for food deliveries.

While Swiggy has already been delivering daily essentials through Swiggy Stores and Swiggy Go, it has partnered with retail grocery stores this time to enable deliveries in most cities it operates in.

On the other hand, Zomato has recently rolled out its own grocery delivery service called Zomato Market, partnering with FMCG firm Marico for essential supplies. Marico is also a partner of Swiggy.