Swiggy is an online food delivery start-up based in Bangalore. It is owned by Bundl Technologies Pvt. Ltd. Swiggy has managed to raise $15 million in the Series D round of funding. The capital comes from Bessemer Venture Partners and existing partners like SAIF Partners, Accel Partners, Apoletto Asia and Norwest Venture Partners.
Swiggy managed to raise $42 million in Series C round of funding both from new and existing partners. The 1st part of the capital of $35 in January this year saw participation by all investors including two new investors namely, Harmony Partners & RB Investors.
The 2nd part of capital of $7 million was raised from Apoletto Asia, Norwest Partners and Accel Partners in May.
Currently, Swiggy’s funding is at $75.5 million which is second to Zomato of $224 million. The new funding will help Swiggy to compete with companies like Zomato Media Pvt Ltd., FoodPanda and Runnr. It will be also for technology upgrades, getting more restuarants on board and improve delivery. The company does not have plans to increase the number of cities but improve operations in the current customer base.
The company currently operates in 7 cities and its profitable in Hyderabad and Bangalore. In the next two years the company wants to replicate its business success in other cities as well. The co-founder and chief executive of Swiggy, Sriharsha Majety said every city needs 9 to 15 months of timeframe to be positive in EBITA. At present, it wants to improve the customers order frequency from 4-5 times a month to atleast 15.
Whereas companies in USA like DoorDash and Postmates have become huge, in India food delivery has been tough. Its mainly due to average ordering and high delivery cost.
Surprisingly, only 2% of the food ordering is available online and still there is a huge untapped market. The customer needs will be responsible for the next phase of growth. In order to jump to the next phase, Swiggy has appointed a Vice Presidents across many functions.
The competition from e-commerce companies with the continuous problem of underutilization of staff has killed many startups like FoodTech last year. Swiggy wants to explore other options to improve efficiency. Swiggy is constantly working to squeeze out maximum margins from restaurants, it needs to be patient for doing it on an individual level. Swiggy believes there is a healthy percentage of restaurants which can drive more from their business.