Swiggy scoops up $113m from Prosus, Meituan, others

Indian food delivery startup Swiggy said it has secured US$113 million as part of its series I raise in a round led by Prosus Ventures.

The funding round also included participation from China’s Meituan Dianping and US-based Wellington Management Company, according to a statement.

Photo credit: Swiggy

The latest capital injection values Swiggy at around US$3.6 billion, according to a TechCrunch report.

Swiggy plans to use the fresh funds to bankroll its expansion into new lines of business such as cloud kitchens and new categories for its on-demand services as it looks to take a “sustainable path to profitability,” said its co-founder and CEO Sriharsha Majety.

It also plans to continue investing in new growth areas, particularly in its services Swiggy Stores, Swiggy Go, and its daily delivery service Supr Daily.

According to the statement, Swiggy’s transaction numbers grew nearly 2.5x this past year. The startup also expanded its restaurant partner base fourfold to over 160,000, adding over 10,000 new restaurants every month. Currently, it has over 250,000 delivery partners across 520 cities.

Prosus, formerly known as Naspers Ventures and Food, first invested in Swiggy back in 2017 when it led the Bengaluru-based startup’s US$80 million series E fundraise. It also led Swiggy’s US$1 billion investment round in 2018.

In August last year, it was reported that Swiggy was in advanced discussions on a potential US$700 million to US$750 million round led by Naspers, which would reportedly inject US$350 million.

Prosus’ investment into Swiggy comes as India continues to see a fiercer food delivery war. Just last month, Zomato, Swiggy’s rival, acquired Uber’s food delivery business in India. According to an announcement, Uber Eats in India will discontinue operations and transfer restaurants, delivery partners, and users of its app to the Zomato platform effective today.