Online food ordering startup Swiggy has raised Rs 47 crore from existing investors Norwest Venture Partners, DST Global and Accel Partners. The value of Swiggy is now over Rs 865 crore or $130 million. Over the past few months, the company has also seen its order value basket size increased to Rs 375 per order. Close to 30% of these orders are cashless.
Swiggy is also fulfilling close to 40,000 orders from the eight cities that it operates in including Bengaluru, Hyderabad and Delhi-NCR.
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.
Reddy explained that the company’s live order-tracking within the app, acceptance of orders without any minimum order size and ownership of fleet are its few differentiators which help them maintain customer repeat rate and differentiates the ordering experience from its competitors.
“We charge our partner restaurants for both lead generation as well as delivery at 25% of the overall order,” said Reddy. But Zomato, which started out as a restaurant discovery platform before moving into delivery last year, claims that it is the largest player as it has a higher average order value of Rs 550-600. The Gurgaon-based company said in its blog on Monday that it made 33,000 orders on Sunday, May 8.
According to Mukul Arora, principal at SAIF Partners, Swiggy’s offering is differentiated from its competitors, which helps the startup command a higher commission from restaurants and therefore build a sustainable business.
Sriharsha Majety, teamed up with college mate Reddy, and IIT-Kharagpur graduate Rahul Jaimini,to set up Swiggy in August 2014. In January, Swiggy had raised $35 million (Rs 230 crore) led by internal investors SAIF Partners, Accel Partners and Norwest Venture Partners.