Swiggy’s funding muscle has got a huge boost after it raised INR 264 Cr in series I funding round led by Tencent & other investors, according to INC 42. The other investors that participated in the round include Ark Impact investments, Korea Investment partner, and MACM India Growth Fund.
Here is the breakup of the investment put forth by the ministry of commerce affairs (MCA) filings, which was accessed by Inc 42. Tencent invested INR 142.CR for 6034 preference shares. Arc Impact invested INR 71 Cr for 3015 preference shares and 2 equity shares. Korea Investment partner invested INR 35.6 Cr for 1498 preference shares and MACM pumped INR 14.2 Cr for 602 shares.
Prior to this Swiggy had last raised $113 Mn in February this year from existing investors like Porus N.V, Meituan Dianping, and Wellington Management Company. This was preceded by a massive $1 Bn funding in December 2018. That funding was spearheaded by Naspers, one of the largest stakeholders in the company. The other investors that participated in the round include Tencent, Hillhouse Capital, and Wellington Management.
The $1 Bn funding especially helped the company stemming the competitive pressure emanating from its arch rival Zomato.
Swiggy may use fresh funds to propel its grocery business
The fresh capital infusion has come at a critical time when Swiggy is seriously mulling to expand its grocery business. The company is likely to infuse funds into its flagship grocery services Swiggy Go and Swiggy Stores.
However, online grocery is a highly competitive space with competition emanating not only from traditional grocery players like Grofers and BigBasket but also from e-commerce giants like Flipkart and Amazon.
Swiggy, therefore, may very well have to raise more funds to keep up its grocery dream alive in this highly competitive environment.