Bengaluru-based online food ordering start-up Swiggy is in advanced discussions to raise $35-40 million (Rs 230-256 crore) from existing investors Accel Partners, SAIF Partners, Norwest Venture Partners (NVP) and DST Partner Fund, according to a report in The Economic Times.
If the talks go through, it will be Swiggy’s third fund raise this year and at a time when cash-strapped food tech start-ups are not doing so well in India.
The brainchild of BITS Pilani alumni Sriharsha, Nandan Reddy and Rahul Jaimani, an IIT-Kharagpur graduate, Swiggy books customer orders for food from multiple restaurants and delivers them at their doorsteps.
Run by Bundl Technologies Pvt. Ltd, Swiggy raised $16.5 million in Series B round from NVP, Accel and SAIF Partners in June this year. In January, it snapped up $2 million in Series A round of funding from Accel and SAIF Partners.
Swiggy, which competes with Foodpanda, TinyOwl and Zomato Order, handles about 14,000 orders on weekdays. The startup is planning to set up kitchens jointly with restaurants as it looks for higher revenues. The planned kitchens will be located in areas where the partner restaurants do not have a physical presence, as per a report in Mint.
Swiggy’s fund raising development comes at a time when other food tech start-ups are scaling down operations due to unavailability of cash and as they fail to convince investors with their business strategies.
Earlier this month, TinyOwl shut its Pune office and fired all 30 employees there as part of a restructuring exercise, while Zomato let go of 300 people, mostly in the US. Dazo has decided to wind up operations barely a year after it came into existence.
According to Tracxn, a company which provides data on start-ups, about Rs.467 crore has been invested in the sector in 2015, with Zomato alone accounting for Rs.320 crore.