Online food ordering startup Swiggy has raised Series C funding worth $35 million from new investors Harmony Partners and Singapore based RB investments and existing investors SAIF Partners and Norwest Venture Partners. It will use the funds for user acquisition and tying up with more restaurants, technology upgrades, hiring, vendor integration, reducing overall delivery time and cost and enhancing customer experience.
The company said that it will focus on profitability and sustainability in its established markets, without naming them. It also claims to have a high percentage of repeat customers. It claims to maintain an average delivery time of 36 minutes per order, despite growing over 20 times in the ‘last few months’.
Swiggy claims to have 5,000 restaurants listed on its platform, and now operates in 8 cities, namely Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata and Chennai. It also has ‘cloud kitchens’ on its platform, along with an in house cloud kitchen and the option to pre-order meals. Cloud kitchens deliver food through their apps or websites, but do not have a physical restaurant.
– In June last year, the company raised Series B funding worth $16.5 million led by Norwest Venture Partners, for expanding to other cities and brand marketing. At that time, the company claimed that over 50% of its daily orders were shifting from the website to its app (both Android and iOS).
– In April 2015, the Bangalore-based service raised $2.5 million from Accel Partners and SAIF Partners. 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. Swiggy was founded by Sriharsha Majety, Nandan Reddy and Rahul Jaimini in August 2014.
Developments in the online food delivery sector:
– Earlier this month, online meals delivery service for trains TravelKhana tied up with the IRCTC, to order food from the portal even while travelling on trains.
– Zomato shut down online ordering operations in 4 cities; Lucknow, Indore, Cochin and Coimbatore. The company said that the size of the market in these cities accounted for less than 2% of its order volumes thus leading it to shut down operations.
– Bangalore-based FreshMenu, an online first restaurant, raised Rs 110 crore (~$16.5M) in a round of funding led by Zodius Capital, and participation from existing investor Lightspeed Venture Partners.
– Online food ordering startup Foodpanda laid off 15% of its staff across verticals, to become ‘sustainable and profitable’. It claimed that it has reduced manual intervention and hit 98% automation rate in order processing, thus leading to cutting its workforce.
Our online food delivery coverage here.