Online food ordering platform Swiggy has raised $113 million, led by existing investor South African internet giant Naspers.
The latest capital raising values the company at nearly $3.6 billion. The fund infusion is part of a larger $150 million funding round, sources said.
Other existing investors, Hadley Harbour Master Investments and Chinese local services platform Meituan, also participated in the round, according to filings with the Ministry of Corporate Affairs.
Of the investment, about $100 million is from Naspers, which is its largest investor with around 40.6% stake. Meituan holds 6.35% in Swiggy.
“Over the last couple of years…we have made strong strides in our vision of delivering unparalleled convenience to urban consumers.. and created multiple growth avenues for our partners while continuing to invest in new lines of business,” Sriharsha Majety, CEO and cofounder of Swiggy, said in a statement.
Swiggy’s valuation has been largely flat from its previous $1 billion round in December 2018, which, too, was led by Naspers, along with China’s Tencent, Hillhouse Capital, and Wellington Management.
The investment comes just a few weeks after rival Zomato acquired UberEats India. Uber’s food delivery platform has since ceased to exist as a separate brand locally, with users being redirected to Zomato’s app.
Weeks prior to that deal, Zomato raised $150 million from existing investor Ant Financial, an Alibaba affiliate, at a valuation of $3 billion.
PROJECTING PROFITS IN 2022
In a valuation report published with the regulator, Swiggy’s management has forecast net profit of Rs 858 crore on revenue of Rs11,021 crore in 2022.
“We are laser-focused on continuing to execute on our vision while building a sustainable path to profitability,” Majety said.
However, for the ongoing financial year ending March 31, Swiggy has forecast revenue of Rs 1,329 crore on a net loss of Rs 1,067 crore.
Swiggy will need a large war chest to build a consumer-facing logistics network as it expands its footprint across the country, especially in small towns and cities and to also scale up its services beyond food delivery.
The company has, over the last few months, started grocery delivery service Swiggy Stores, concierge service Swiggy Go as well as scaled-up SuperDaily, its everyday micro-delivery service.
“Swiggy has built a solid leadership position in India and is utilizing its strong logistics network and consumer loyalty to expand its offering to services that continue to make consumer lives more convenient,” said Larry Illg, CEO of Prosus Ventures and Food, which was formerly known as Naspers Ventures and Food.
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