According to Tech Crunch, the global internet and entertainment company has invested in several online food ordering and delivery companies worldwide, including the Brazilian company iFood and, in Mexico, SinDelantal. And earlier this month, it committed $425 million to the German food delivery business Delivery Hero.
India’s food delivery market had been popular with venture capital investors. By the beginning of 2016, venture investors had backed roughly 400 food delivery startups with roughly $120 million in funding. And Uber and Google both launched services, UberEats and Areo, respectively, in the country.
But replacing traditional business models has proven tricky and even caused some promising delivery companies to shut down. Tiny Owl, which raised $27 million from white-shoe venture firms Sequoia Capital and Matrix Partners, had big plans to expand to 50 cities and at one point had about 1,200 employees. Today, however, it operates in only two cities and has about 200 workers.
But Swiggy seems to have weathered the storm. It currently has more than 12,000 restaurants on its delivery platform and delivers meals within 37 minutes of an order.
“Swiggy has shown impressive growth in a highly competitive market,” said Ashutosh Sharma, head of investments in India for Naspers, in a statement. “Naspers was attracted to the company’s exceptional execution in disrupting online food ordering and delivery in India while many players are struggling. Swiggy’s ability to create a sustainable business, earning consumer trust through a reliable first-party delivery technology, positions it well for success.”