Food ordering and delivery startup Swiggy is operational in eight cities and has over 9,000 restaurant partners live on its platform
After a spike in investments last year, the Indian foodtech industry witnessed many crashes this year, with some like PepperTap winding up operations and biggies like Foodpanda, Zomato, TinyOwl and Grofers significantly scaling down. Unfavourable market conditions, unmatched unit economics, poor infrastructure, neck-to-neck competition and huge customer acquisition costs did them in.
Only a few weathered the storm, and Swiggy was one of them. The Bangalore-based startup, a food ordering and delivery platform, has now raised US$15 million in a Series D from Bessemer Venture Partners, with participation from existing investors.
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The funds will be used to provide an improved customer experience, which include technology upgrades, a wider spread of restaurants to choose from and better delivery efficiency.
This comes on the heels of its US$35 million Series C funding in January this year. With the latest round, Swiggy’s total funds raised so far has reached US$75.5 million.
Swiggy’s founding team
Since its inception in 2015, Swiggy has rapidly grown to become a key player in the Indian food delivery space. It processes the orders on its platform via its own delivery fleet which is responsible for picking up and delivering food to its customers. Having its own delivery fleet enables them to offer their customers a variety of convenient features like faster deliveries, no minimum order and live tracking of their delivery.
The company claims it is the fastest food delivery service in the country, with average delivery time at 37 minutes.
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Currently, Swiggy is operational in eight cities and has over 9,000 restaurant partners live on its platform.
Sriharsha Majety, Co-founder and CEO, Swiggy, said, “Our strong growth in the last few months shows that our customers are increasingly becoming accustomed to a new behaviour of ordering food for the experience, rather than only for convenience. Our vision is to change the way India eats and we want to be the top of mind recall for the users for all their four meals a day.”
Norwest Venture Partners, SAIF Partners, Accel Partners, New York-based Harmony Partners and Singapore-based RB are investors in Swiggy.
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