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Swiggy

Swiggy adds $43 Mn in ongoing Series I round led by Tencent

Swiggy

Foodtech major Swiggy has added $43 million more in its ongoing Series I round led by Chinese tech giant Tencent. New investors Ark Impact, Korea Investment Partners, Samsung Ventures and Mirae Asset Capital Markets have also participated in the round.

According to regulatory filings, the company has allotted 12,972 Series I CCPS and 15 equity shares to 5 investors at an issue price of Rs 2,36,130 per share. Tencent led the round with an investment of Rs 142.5 crore, followed by Ark Impact and Korea Investment Partners who invested Rs 71.24 crore and Rs 35.6 crore respectively. 

Samsung Ventures also picked up stake worth Rs 43.1 crore along with New Delhi-based MACM India Growth, which joined the round with a contribution of Rs 14.23 crore.

The Bengaluru-based firm had raised Rs 805 crore ($113 million) from Naspers, Hadley Harbour Master Investments and Meituan. Entrackr had exclusively reported the development last month. 

The size of the round now stands at $156 million and now Swiggy has been valued at about $3.65 billion.

The fresh funding has come at a time when food delivery platforms are struggling as the lockdown severely hit their business. Media reports suggested that Swiggy and Zomato have been facing a 70% decrease in order volumes during the ongoing lockdown period.

“As we continue to strengthen and expand our services that offer unparalleled convenience to our consumers, we are humbled by the faith shown by our investors year-on-year and welcome the new investors on board. Our focus remains to execute on our vision while building a sustainable path to profitability,” said Rahul Bothra, CFO, Swiggy.

Swiggy would be looking to rake in sluggish demand and solve the issue related to compliance and delivery channel as thousands of delivery partners have temporarily left their job due to coronavirus scare.

To compete holistically with Swiggy, its arch-rival Zomato has launched grocery delivery services in several parts of the country. The move is on the lines of Swiggy Stores which has been gaining momentum since launch in February 2019.

Moreover, Zomato has also come closer to Swiggy in terms of valuation. The Gurugram-based firm has crossed the $3.25 billion valuation mark after a recent capital infusion from Scotland-based Pacific Horizon Investment Trust.

During FY19, Swiggy had a revenue of Rs 1,122 crore while it made a total expense of Rs 3,638 crore. The biggest revenue contributor was from marketplace services that stood at Rs 805.7 crore. Income from promotions and delivery income followed at Rs 385 crore and Rs 197.3 crore respectively.

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