Swiggy, the popular online food delivery start-up, is apparently in talks with potential investors to raise at least $50 million in fresh funding. If this comes through, it will give the company a big boost over Zomato. This was reported by Live Mint, based on information from two persons aware of the development.
The sources also stated that Swiggy is in talks with South African media company Naspers Ltd. as well as Chinese conglomerate Fosun International Ltd. to raise fresh capital, along with existing investors being likely to participate.
Since it’s inception, Swiggy has become one of the best and most funded food delivery start-ups in the country. So far, the start-up has raised at least $75 million in equity from investors like Accel Partners, Bessemer Venture Partners and more.
While the deal is yet to be closed, one of the sources told Live Mint, “Swiggy has ample cash in the bank but they want to strengthen the war chest further. With this round, they will get some financial cushion. The existing investors are likely to pool in at least $20 million.”
Earlier this year, Swiggy was in talks to set up a cloud kitchen format in Bengaluru with tests underway. While there is no update on that, this is definitely a huge development for the start-up which has gone through some changes along with charging customers for delivery. And that’s not all, if the stories from last year are to be believed, Amazon India might be investing in Swiggy to get a feel for the food delivery market in the country.
Currently, Swiggy operates in eight Indian cities – Bengaluru, Delhi, Mumbai, Chennai, Pune, Gurgaon, Hyderabad and Kolkata.