Exclusive: Swiggy raises $113 Mn from Naspers, Meituan and Wellington Mgmt

Food delivery major Swiggy has raised Rs 805 crore ($113.3 million) in Series I round led by South African multinational Internet Group Naspers, which alone has invested Rs 712 crore ($100 million). Existing investors Hadley Harbour Master Investments and Meituan have also participated in the round.  

According to regulatory filings, Swiggy has allotted 30,170 shares to MIH India Food (owned by Naspers). Hadley Harbour, a unit of Wellington Management, has picked up 302 shares worth Rs 7.13 crore. Meituan-controlled Inspired Elite Investments has put in Rs 85.14 crore for 3,606 shares.

Entrackr had exclusively reported that the company was looking to raise $300 million worth internal round in December. Our sources had emphasised then that Naspers would invest up to $150 million.

Post this round, Naspers holds about 40.56% ownership in the company while Meituan has close to 6.35% equity in the Bengaluru-based company. Wellington Management commands a little over 1% stake.

It’s worth noting that this is a significant infusion in the company after its $1 billion worth Series H round in December 2018. The Series I round seems to be an ongoing round and the company is likely to raise more capital.

Entrackr’s back of the envelope calculation shows that post this allotment, the company’s estimated market cap stands at around $3.5 billion (pre-money). 

This latest round for Swiggy comes at a time when rival Zomato has been struggling to raise funds. According to a TOI report, Zomato has received a commitment of $200 million from Ant Financial. Recently, it had bought UberEats in a deal worth $350 million.

Swiggy Clocks about 45 million orders a month while Zomato does about 35-40. Besides food delivery, Swiggy also runs grocery and other essential delivery business Swiggy Stores and a Dunzo kind of service - Swiggy Go.

Unlike the past two-three years, food delivery business will have a sluggish growth as the overall economy is going through turbulent times. 

And the ongoing fight between Swiggy and Zomato looks set to turn interesting with Amazon gearing up to enter the food delivery business.