Food delivery startup Swiggy raises $80mn in Series E funding led by Naspers

Online food delivery startup Swiggy has raised a whopping $80 million in Series E funding led by South African Internet and media conglomerate Naspers. With this investment, which is almost equal to the overall investments in the sector last year, has pegged Swiggy’s valuation at about $400 million.

Existing investors Accel India, SAIF Partners, Bessemer Venture Partners, Harmony Partners, and Norwest Venture Partners also participated in the round.

Swiggy will use the funds to introduce a host of new product and services. The startup also announced plans to double its engineering headcount and increase its investments in core engineering, automation, data sciences, machine learning and personalization.

As a part of the investment, Ashutosh Sharma, Head of Investments in India for Naspers, will join the Swiggy Board.

Ashutosh Sharma, head of investments in India, Naspers said in an official statement, “Swiggy has shown impressive growth in a highly competitive market. Naspers was attracted to the company’s exceptional execution in disrupting online food ordering and delivery in India while many players are struggling. Their ability to create a sustainable business, earning consumer trust through a reliable first-party delivery technology, positions them well for success.”

Swiggy, which has currently has close to 12,000 partner restaurants in eight cities, recorded 1 million orders in April 2016, as per the Economic Times report.

Sriharsha Majety, co-founder and CEO, Swiggy said, “In a span of three years, Swiggy has been instrumental in changing the way India eats by delivering delightful customer experiences. This investment by Naspers is further testimony to Swiggy’s vision and performance.”

Recently, Naspers also invested $421.3 million in Berlin-based food delivery platform Delivery Hero.