Naspers, one of the largest technology investors in the world, will lead partners to invest $1 billion (R14 billion) in Swiggy, India’s largest food delivery platform.
This is Naspers fourth investment in Swiggy, after co-leading a $210 million (R2.8 billion) investment into Swiggy six months ago.
The South African-based company said this new round includes participation from several existing investors including DST Global, Meituan Dianping and Coatue Management, along with new investors Tencent, Hillhouse Capital and Wellington Management.
Founded in 2014, Swiggy has launched itself to a leading position in the Indian food ordering and delivery market and continues to grow at a rapid pace.
Swiggy is India’s largest food delivery platform with over 50,000 restaurant partners
spread across 50 cities. Using innovative technology, the platform provides a hassle-free, fast and reliable delivery experience. Every order delivered by Swiggy’s fleet, the largest in India, ensures a host of customer-centric features like lightning fast delivery, no minimum order value, live order tracking and 24/7 customer support.
Swiggy’s unprecedented growth and focus on providing the best service possible for Indian consumers is demonstrated by the doubling of its gross merchandise value in the last six months, as it continues to unlock the tremendous potential in Indian food delivery.
The company will use the funds to bring more quality food brands closer to consumers and address gaps in supply through delivery-only kitchens under the ‘Access’ initiative for restaurant partners.
Naspers said Swiggy will also use the capital to hire top-notch talent, especially for machine learning and engineering roles across mid and senior levels. It will also strengthen its technology backbone and focus on building the next-generation AI-driven platform for hyperlocal discovery and on-demand delivery.
“Swiggy has been at the forefront of elevating the potential of Indian food delivery with its industry-changing innovations and focus on delivering the best consumer experience to millions of Indians,” said Sriharsha Majety, CEO, Swiggy.
“As we add more firepower to our vision of elevating the quality of life for urban consumers by offering unparalleled convenience, we’re pleased that visionary global investors share
our purpose and have made such a significant investment in our future.”
Since the last round of funding six months ago, Swiggy has expanded to 42 additional cities and strengthened its leading market share along with industry-best repeat rates and net promoter score (NPS).
Swiggy’s expansion follows a conscious effort to grow in a sustainable manner, ensuring unmatched consumer experience, consolidation of demand for its restaurant partners, and enabling sustainable earnings for close to 120,000 delivery partners.
“We first partnered with Swiggy in April 2017 because we recognized the Swiggy team had built a sustainable, long-term business, that stood out amongst others in India. Now, nearly two years later, we have even more confidence Swiggy has the winning formula and will continue to build a leading business in the country. Swiggy has 10x the number of orders per month since our first investment, has expanded throughout India to tier 1, 2 and 3 cities, and most importantly, is the most loved food delivery brand in India, providing the best service to consumers nationwide,” said Larry Illg, CEO Food and Ventures,
“Our latest round of capital will help to accelerate Swiggy’s journey towards its vision of providing unmatched convenience in food ordering and delivery for Indian consumers.”
In addition to Swiggy, Naspers has expanded its food delivery portfolio over the past several years by investing in companies with leading businesses in 40 countries around the world. The portfolio also includes Delivery Hero, a leading online food ordering and delivery platform in 36 countries, iFood, a leading online food delivery business in Brazil and Mexico and Mr. D Food, the leading online food delivery business in South Africa.
The online food delivery market globally is underpenetrated, presenting big growth opportunities that are well-aligned with Naspers’ footprint. Shifting global trends including
increased population and smartphone usage will fuel additional growth in online food delivery, and Naspers has the talent and business expertise.
Naspers’ substantial investment in Swiggy, as well as its recent investment in BYJU’S leading a $540 million funding round, demonstrates the company’s commitment to India across multiple sectors.
Indian online consumers will be a significant driver of online growth in the world, and in addition to food and education, Naspers’ investments and operations in India include online classifieds business, OLX; MakeMyTrip, the leading online travel company; and payments company, PayU.
The quality of the best Indian entrepreneurs and their ability to build innovative businesses that address the unique needs of the Indian consumer offer unparalleled growth opportunities.