Swiggy, the online food ordering and delivery platform, has raised $80 million in Series E funding led by global internet and entertainment group Naspers, along with participation from existing investors Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners.  Ashutosh Sharma, head of investments in India for Naspers will join the Swiggy Board, the company said in a statement.

The funds raised will be used for introducing a suite of new product and service offerings by the company. Swiggy also announced that it plans to double its technology headcount and increase investments in core engineering, automation, data sciences, machine learning, and personalization. The company plans to hire middle and senior leadership members to double its engineering team by 2018 to 200 people, as reported by ETTech.

The platform currently has 12,000 partner restaurants in eight cities and claims it had a six-fold increase in revenues last year. The company has been valued at $400 million as part of the current round. 

The publication further added that the company had reduced delivery cost by 35%.  Swiggy’s losses for FY 2015-16 was  Rs 137.18 crore a 65 fold increase from Rs 2.12 crore in FY 2014-15. Note that in December Swiggy started charging delivery charges for orders below Rs 250. In January this year, it started ‘The Bowl Company’ to provide its own kitchen space to restaurants to offer some items in areas where the restaurant does not have a physical presence.

Earlier Funding

In September last year, Swiggy raised $15 million in a Series D funding led by Bessemer Venture Partners. In May 2016, it raised Rs 47 crore (a little over $7 million) from Norwest Venture Partners, DST Global and Accel Partners.  In January 2016, Swiggy raised Series C funding worth $35 million from new and existing investors for using across user acquisition, adding restaurants, tech upgrades, hiring etc. In June 2015, the company raised Series B funding worth $16.5 million. In April 2015, it raised $2.5 million from Accel Partners and SAIF Partners.

Competition

Swiggy now competes with Zomato, Foodpanda and new entrant UberEats.

FoodPanda was acquired by Delivery Hero in December last year. Interestingly, earlier this month, Naspers invested $421.3mn in Delivery Hero as well. According to unconfirmed reports, a part of this was to be invested in FoodPanda. For FY 2015-16, Foodpanda reported revenues of Rs 37.81 crore, up 704.4% from Rs 4.7 crore in 2014-15. It also reported losses of Rs 142.6 crore for 2015-16, increasing from Rs 36 crore in 2014-15

On the other hand, Zomato has over 2 million orders a day while Swiggy has one million. It introduced a subscription model in April this year priced at Rs 249 a year. This added as a new revenue stream for the company. For the year FY17, food ordering accounted for $9 million in revenues, around 8 times of FY16. Meanwhile, ad sales accounted for $38 million in revenues in FY17, 58% higher than FY16. Zomato reported revenues of $49 million for the financial year ended 31st March 2017 (FY17), a growth of 80% over FY16.  Cab aggregator Uber launched UberEats earlier this month in Mumbai and plans to expand across the country.