Foodtech has again turned hot as investors confidence have returned in the segment in a big way. After Zomato $200 million fundraise from Alibaba, its arch-rival Swiggy has announced $100 million Series F round from South African media heavyweight Naspers and China-based Meituan-Dianping.
The company will be deploying Series F round towards rolling out new products and services and strengthen its supply chain business.
With this round, Swiggy has raked in $225 million in total risk capital from the aforementioned investors including Accel India, SAIF Partners Bessemer and three others.
The Bengaluru-based company had secured over $80 million (Rs 517 crores approximately) in Series E funding led by Naspers. Two months ago, it acquihired gourmet food startup 48East to broaden its senior leadership.
Meituan Dianping is a China’s leading app-based food delivery service. Last year, it had raised whopping $4 billion from Tencent and US-based travel giant Priceline Group, and Sequoia Capital on staggering $30 billion valuation. It does 300 million deliveries a month.
In December last year, Swiggy crossed 5 million order mark. This was a significant upside for the food delivery company that was delivering 3.5 to 4 million orders a month during August to October period in 2017.
To boost commission and revenue, Swiggy has been creating its own brand – ‘The Bowl Company’ for past one year.
Its rival Zomato had reached the 3 million orders mark last year and claimed to have narrowed the gap with the competitor in August this year. Currently, the Gurugram-based company does about 3.5 million deliveries, indicate sources.
Meanwhile, Swiggy revenue jumped 6 times to Rs 133 crore in FY17 from Rs 20 crore in 2016.
The food-tech space in India is currently on a rise. According to the Kotak Institutional Equities, the food delivery and takeaway market is set to grow to $29 billion by 2021 with the number of orders going up to 51 million on a monthly basis. There is enough potential to grow in this segment.
The development was first reported by Techcrunch.