Online food ordering and delivery startup Swiggy has raised Series B funding worth $16.5 million led by Norwest Venture Partners, with participation from existing investors SAIF Partners and Accel Partners and an undisclosed entity. Swiggy will use the funds for expanding to other cities and brand marketing.
Swiggy expanded operations to Gurgaon and Hyderabad this year, where it claims to have partnered with over 200 restaurants in both cities. The company claims that over 50% of its daily orders are shifting from the website to its app (both Android and iOS).
In April this year, the Bangalore-based service had raised $2.5 million from VC firm Accel Partners and SAIF Partners. The company had said then that it would use the funds towards hiring and expansion of the company to cities like Mumbai, Delhi and Chennai by end of this year. At that time, it took a percent of the order generated from the restaurants and tied up with over 300 restaurants, claiming to deliver over 1,000 orders daily.
Founded in August 2014 by Sriharsha Majety, Rahul Jaimini and Nandan Reddy, Swiggy employs its own delivery personnel that uses an app powered by an algorithm on their smartphones to check for delivery routes. Swiggy says that this helps them provide users real time tracking of the order status. Because of its in-house fleet, Swiggy doesn’t have a minimum order value. However, now it charges Rs 30 for orders below Rs 150. The company accepts online payments for all the restaurants that they work with.
Recent developments in the online food ordering space
– Earlier this week, online food ordering service TinyOwl launched a new feature called Dishes, which allows users to order specific dishes or meals from certain restaurants in a single tap. TinyOwl CEO Harshvardhan Mandad told MediaNama that the Dishes feature currently has about 1, 000 restaurants across the country, with more joining.
– Last week, Zomato’s food ordering app Zomato Order extended to Mumbai and Pune. The company claims that the app lists around 1,000 restaurants in Mumbai where users can order from. The Gurgaon-headquartered company launched Zomato Order last month. At the time, the service was only available in Delhi-NCR.
– Last month, Hyderabad-based Red Sprout Foods which owns the Hello Curry brand, acquired the online food ordering and delivery service Paratha Post. The acquisition was done in an all cash and stock deal, however further details were undisclosed. Red Sprout Foods, which operates the fast food chain, said it was looking to acquire further startups especially in Mumbai.
– In the same month, online food ordering and delivery company Foodpanda raised $100 million funding led by Goldman Sachs, with participation from existing investors Rocket Internet. The funds would be used to expand its delivery activities and improve overall customer experience across the 40 markets it’s operational in.