Swiggy, a Bengaluru-based online food delivery unicorn is likely to close a $700-750 million round led by Naspers, reported Livemint, citing several sources. The fresh funds will be used to expanding its footprint in new regions and strengthen the two new platforms, Swiggy Stores and Swiggy Daily.
The sources further revealed that Naspers will pump in around $350 million, while a consortium of Korean investors, including STIC Investments and Korea Omega Investment, will together chip in with $50 million.
Swiggy was founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini in 2014. The company claims to have over 2 Lakh delivery partners and more than 1 Lakh restaurant partners spread across 200+ Indian cities.
While, the anonymous sources also said that the latest round, which comes over eight months after Swiggy raised $1 billion, will value the firm at around $4 billion.
According to industry estimates, Swiggy clocks 900,000-1 million daily orders, and burns close to $40 million every month. The firm is trying to reduce the high cash burn by diversifying and optimising its fleet usage.
Furthermore, as per the Market Research Future, a business consultancy.Indian food delivery firms have generated investor interest on the back of the expected growth in this segment. The online food ordering market in the country is pegged to grow over 16% year-on-year to touch $17.02 billion by 2023.