Indian unicorn Swiggy mops up $113m funding led by Naspers

Online food delivery platform Swiggy has raised about $113 million in a funding round led by its largest existing investor South African internet giant Naspers.

Other existing investors Hadley Harbour Master Investments and Meituan also participated in the round, according to the company’s regulatory filings sourced by paper.vc.

Swiggy has attained a post-money valuation of $3.4 billion in the ongoing round, estimates paper.vc.

MIH India Food (owned by Naspers) has subscribed to 30,170 shares of Bundl Technologies, the parent company of Swiggy, by investing about $100 million (Rs 712.4 crore) while Hadley Harbour Master Investors (Cayman) II LP, a unit of Wellington Management, has picked up 302 shares worth Rs 7.13 crore in the Indian company.

Meituan-controlled Inspired Elite Investments has pumped in about Rs 85.14 crore in exchange for 3,606 shares, the filings show.

With the current investment, Naspers continues to remain the largest shareholder in Swiggy, with a holding of 40.56 per cent on a fully diluted basis. On the other hand, Meituan now owns close to 6.35 per cent equity in the Bengaluru-based company.

“This investment is part of Swiggy’s plan to raise up to $1 billion for its food delivery and cloud kitchens business. There have been reports of SoftBank looking to invest in Swiggy, but that has not happened yet,” Sonia Pradhan, Founder, paper.vc said.

“Swiggy is currently locked in a battle for market share with Zomato and a bunch of smaller, rapidly growing cloud kitchens businesses such as Box8 and Rebel Foods,” she added.

The latest financing comes more than a year after Swiggy raised $1 billion in a funding round led by Naspers. It arch-rival, Zomato, mopped up $150 million from existing investor Ant Financial in January this year.

Zomato also acquired Uber’s food delivery business (UberEats) in India in a $350-million deal last month. The all-stock transaction gave the US-based ride-hailing company about 10 per cent shareholding in Zomato.

While both Swiggy and Zomato continue to lead India’s online food delivery market, the story is going to take an interesting turn with Amazon’s entry into the space. According to a report in BloombergQuint, Amazon has started testing food delivery in Bengaluru. The service is currently available for only a few locations in the city.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.