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Food delivery firm Swiggy raises $16.5 mn from Norwest Venture Partners, others

Bangalore-based Swiggy has raised $16.5 million in additional
funding to make a play for the Indian market.

Bangalore-based Swiggy has raised $16.5 million in additional
funding to make a play for the Indian market.

Launched in Bangalore in August 2014, Swiggy is takeout delivery
service targeting young, working professionals. While many food delivery
apps rely on restaurant employees for delivery services, Swiggy has hired its
own delivery fleet, powered by a routing algorithm, to maximize speed and
efficiency, reports TechCrunch. This makes the payment process more convenient
as well — there’s no minimum order amount, and customers can choose from
multiple online payment options.

The Series B round was led by Norwest Venture Partners. Existing
investors Accel Partners and SAIF Partners also participated in the round. The
funding will reportedly power expansion into several additional
Indian cities this year, following recent launches in Gurgaon and
Hyderabad.

“Food delivery [in India] is a $6 billion market, which is completely
mobile app driven, focused on the young working-age population with
high-frequency usage,” Sumer Juneja, who led the round for NVP, told TechCrunch.

According to CrunchBase, Swiggy is one of 14 India-based food or grocery
delivery startups that have raised venture funding in the past year. Mumbai-based
food delivery app TinyOwl has raised a total of $20 million from
Sequoia and Matrix, and Gurgaon-based grocery delivery service PepperTap announced
$10 million in Series A funding (also from Sequoia) in April.

The food and grocery delivery sector in India is increasingly becoming
quite crowded. Here how Swiggy has distinguished itself in this
competitive segment, the company provides a curated list of restaurants and
dishes, as well as ensuring an exact delivery time. Founder Sriharsha Majety
said in the report that Swiggy has seen a 10x growth in order
numbers over the past few months, with over half of daily orders placed through
the mobile app.

“This space is crowded right now, but we will see consolidation over the
next couple of years,” Mukul Arora of SAIF Partners, who is also an investor in
PepperTap, was quoted in the report as saying. “Our strong belief is that the
winner will be the player which offers the best customer experience,” Arora
added in the report.

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