Food delivery app Swiggy raises another $15M in their latest round of funding
Two year old food delivery app Swiggy raised additional $15M funding from Bessemer Ventures. Existing investors, Accel Partners, SAIF Partners, Norwest Venture Partners and Apoletto Asia also contributed in this funding round.
This VC back food delivery app was started on August 1st 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety.
Total funding raised including this round is $75.5M. Below are details of all the funding rounds.
“We are excited about the funding as this is a validation of our performance and recognition of our leadership, in addition to being testament to the tremendous potential of the food tech sector,” Sriharsha Majety, co-founder and chief executive at Swiggy, said in a statement.
“Our strong growth in the last few months shows that our customers are increasingly becoming accustomed to a new behaviour of ordering food for the experience, rather than only for convenience,” Majety added.
Swiggy is competing with FoodPanda, Zomato, and Runnr (formed after merger of Tinyowl and Roadrunnr). Zomato entered food delivery business in April 2015, raised $225M in funding. Runnr raised $28M in funding.
Swiggy’s biggest challenge is the ticket size of each order. Currently for Rs 200 order there is no delivery charge in Hyderabad. Rs 50 at least will go towards delivery charge, which should include the delivery executive cost too. In future Swiggy would have to add delivery charge to stay profitable.