India’s largest food delivery company, Swiggy, has raised $113 million in a Series I funding round, according to a report by TechCrunch.
The funding round was led by Prosus Ventures, a venture capital fund that caters to food delivery startups. The funding coincides with Zomato acquiring Uber Eats' India business. Meituan Dianping and Wellington Management Company also took part in the funding round.
Swiggy now has a valuation of $3.6 billion, which is a little higher than its previous valuation of $3.3 billion. So far, Swiggy has raised $1.57 billion.
Swiggy Co-Founder and CEO Sriharsha Majety said the company is going to use the money to invest in “new lines of business” like more delivery options besides food, as well as cloud kitchens. It wants to be on a “sustainable path to profitability.”
Prosus Ventures invested in Swiggy three years ago and since then has become the food delivery company's biggest investor. In December of 2018, it invested over $700 million in Swiggy.
“Swiggy continues to exhibit strong execution and a steadfast commitment to delivering the best service to consumers and has one of the best operational teams in food delivery globally. We are confident Swiggy will continue on a path to earn a significant place in the daily lives of Indians,” said Larry Illg, chief executive of Prosus Ventures and Food.
Swiggy is based in Bangalore, and it’s seen its growth more than double in terms of transactions in the last year. The company has 160,000 restaurant partners, with an average of about 10,000 joining every month.
Analysts, however, say that despite the brisk pace of business, it’s going to be hard for Swiggy and its rival Zomato to reach profitability, especially since they’re both spending about $20 million every month to get more customers.
Since the exit of Uber Eats, though, investors have remained bullish on the companies because there are now essentially only two food delivery players in the country.