Leading investors such as Naspers, DST Global, Coatue Management and Meituan-Dianpin have successfully pumped in $210 million into Swiggy, after which, their valuation have soared to mind boggling $1 billion+.
With this Series G funding, Swiggy has become the 2nd food tech app to become a Unicorn, which is a term attributed to those startups whose valuation has become $1 billion or more.
In the month of February this year, Swiggy had raised $100 million from Naspers and Meituan as Series F funding. Hence, within a short span of 4 months, Swiggy has raised another round of funding.
Meituan-Dianping is a Chinese ecommerce firm, while Coatue Management is a US based hedge fund, which has invested for the first time in Swiggy. Interestingly, Naspers is South Africa’s largest venture capital fund, and owns 33% of Tencent, China’s one of the largest digital company and investor.
Last year, Softbank, Alibaba, Tencent & Flipkart were all keen to invest in Swiggy, and take a pie in its growth story.
The funding trend clearly indicates the dominance of Chinese investors in food delivery space of India.
Zomato’s Dominance Is Being Challenged?
Now, as Swiggy has turned into a Unicorn, it is directly challenging Zomato, which was the only Unicorn in food tech space till now.
Swiggy is operational in 15 cities, and claims to process 1 crore orders per month as they have partnerships with 35,000 restaurants and powered with a fleet of 40,000 personals.
Beside, Swiggy is also keen on launching micro-delivery orders, pan-India. Recently, they acquired Mumbai based microdelivery startup SuprDaily, and they are very soon about to launch milk delivery services as well.
Last year in the month of November, we had reported how a consolidation may take place between Zomato and Swiggy, but it seems that the table has turned full circle since then.
Instead of joining forces, both Zomato and Swiggy are looking at fighting it out, till the real winner emerges.
Exciting times for food enthusiasts and startups in food tech, because big money is seeping into the system, which promises lot more growth and lot more action.