Bangalore-based Bundl Technologies Pvt Ltd, who runs and operates food ordering app Swiggy, has raised an additional $7 Mn (INR 47 Cr) from its existing investors Norwest Venture Partners, DST Global and Accel Partners. Swiggy’s valuation has increased as the company raised this funding round at a valuation of $130 million.
The new round of funding gives the startup additional horsepower to go deeper into its core eight cities and maintain its market leadership position as it competes with other startups including Zomato and Runnr, to be formed after the merger of Roadrunnr and TinyOwl.
In January 2016, Swiggy had raised $35 million (around Rs 236 crore) in a Series C round of funding from New York-based investor Harmony Partners and Singapore-based RB Investments. Existing investors also participated in the round.
Commenting about this new funding round, Nandan Reddy, cofounder of Swiggy, told ET:
As the market leader, our goal is now to create defensibility around the brand with superior experience for both customers and restaurants. We charge our partner restaurants for both lead generation as well as delivery at 25% of the overall order.
Founded in 2014 by BITS Pilani alumni Sriharsha Majety, Nandan Reddy and IIT Kharagpur graduate Rahul Jaimini. It claims that its order value has grown over 20 times in the last few months with an average delivery time of 36 minutes per order.
Swiggy’s platform enables customers to order food from restaurants in eight cities, including Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai and Pune. It claims to have over 5,000 restaurants listed on its platform. The startup also claims to deliver 38,000 orders per day.
Currently, there are several other players in the food-tech space. While startups such as Eatfresh, Faasos and FreshMenu follow a ‘full-stack’ model wherein they manage the end-to-end food-supply process from preparation to delivery, firms such as Swiggy, TinyOwl, Zomato Order and Foodpanda act as standalone food ordering platforms.
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