Bangalore-based food ordering start-up Swiggy has raised $30 million in Series C round of funding from New York-based Harmony Partners and Singapore-based RB investments, a sign that the sector might be recovering from the troubles of 2015.
The development comes at a time when food delivery apps are shutting down and firing people due to unavailability of cash or failing to raise further rounds of funding from investors sceptical of their ability to become profitable.
Last week, Zomato shut its operations in four cities including Lucknow, Kochi, Indore and Coimbatore and prior to that it fired around 300 employees mostly in US.
In Dec 2015, Eatlo Tech Solutions ended operations and in Nov, TinyOwl shut its Pune office and fired all 30 employees there as part of a restructuring exercise. Prior to that in Oct, Dazo closed shop barely a year after it came into existence and Spoonjoy acquired by hyperlocal delivery company Grofers (Locodel Solutions Pvt. Ltd).
This is Swiggy’s third round of funding in past one year. Run by Bundl Technologies Pvt. Ltd, Swiggy raised $16.5 million in Series B round from NVP, Accel and SAIF Partners in June 2015. Same year in January, it snapped up $2 million in Series A round of funding from Accel and SAIF Partners.
“The newly received funds will be used to consolidate Swiggy’s position as a market leader and to capture a larger share of the burgeoning $15 billion food delivery sector in India,” the company said in a statement.
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 doorstep.
“While our focus will continue to be growth across all geographies, we will now concentrate on profitability and sustainability in established markets. We are looking at delivering over one million orders a month in the near future,” said Sriharsha Majety, CEO and co-founder of Swiggy.
Swiggy is one of the top food app in the country and competes with likes of Foodpanda, TinyOwl and Zomato. Currently present in Bangalore, Gurgaon, Chennai, Hyderanad, Delhi, Mumbai, Pune, Kolkata, the company has 5,000 restaurants listed on its platform and handles about 14,000 orders on weekdays.
The company is also planning to set up cloud kitchens that will function as production units without dine-in facilities and will cater to demand generated on Swiggy from surrounding localities.