Swiggy, the online food delivery startup, is on the peaks of talks, likely for a possible fundraising round with potential investors to raise a wholesome of $50 Mn. The move is likely to give the startup a financial “peso” over its competitor Zomato.
Naspers Ltd, a South African media company and venture capital firm in association with Chinese conglomerate Fosun Internation Ltd shall be participating in the round. Existing investors are likely to participate, two people aware of the development spoke to Livemint.
Swiggy, a food-tech startup, has till now raised about $75 million from various investors like Accel Partners, Bessemer Venture Partners, Harmony Partners, RB Investments, Norwest Venture Partners, SAIF Partners and Apoletto, the personal investment firm of Russian billionaire and founder of DST Global, Yuri Milner.
Debt-financing also helped Swiggy to boom its operations as the firm has raised around $8 Million in venture debt from venture capital firm InnoVen Capital. Swiggy lags behind Zomato who has topped the fundraiser trends grabbing $224 Million of fundings till date.
Swiggy currently operates in eight cities—Bengaluru, Delhi, Mumbai, Chennai, Pune, Gurgaon, Hyderabad, and Kolkata. The company is also piloting its own kitchens in Bengaluru. The revenue of the company hit ₹23.59 crores ending 31 March which is quite high compared to the last year’s ₹11.59 lakhs.
Losses accumulated to ₹137.18 crores from ₹2.12 crore in fiscal 2015, the company’s filing with the Registrar of Companies shows. Total expenses stood at Rs160.77 crore, implying that Swiggy burnt about Rs13 crore per month in FY16.
Swiggy is Founded by Sriharsha Majety, a BITS Pilani and IIMC alumnus, Nandan Reddy, BITS Pilani alumnus and Rahul Jaimini from IIT Kharagpur.