Food Delivery Startup Swiggy Raises $7M From NVP DST

Food delivery startup Swiggy has raised an additional Rs 47 crore ($7 million) from existing investors Norwest Venture Partners, DST Global and Accel Partners citing a filing with the Registrar of Companies. The latest funding, which comes in four months after it raked in $35 million, values Swiggy at over Rs 865 crore ($130 million), it said. 
 
 
In January, the Bangalore-based food ordering start-up Swiggy had raised $30 million in Series C round of funding from New York-based Harmony Partners and Singapore-based RB investments.  Existing investors SAIF Partners, Accel Partners and Norwest Venture Partners also put in money in the new round. Swiggy, owned by Bundl Technologies Pvt. Ltd, has so far raised at least Rs.340 crore ($51 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. Swiggy founders refused to comment on the current round. The company competes with Zomato Media Pvt Ltd, which entered the food delivery business in April last year. Other competitors Foodpanda and TinyOwl have been struggling to sustain operations. It was recently reported that TinyOwl would merge operations with Roadrunnr to launch a combined brand named Runnr. 
 
 
Swiggy is fulfilling close to 40,000 orders from the eight cities that it operates in including Bengaluru, Hyderabad and Delhi-NCR. Over the past few months, the company has also seen its order value basket size increase to Rs 375 per order.Foodtech companies have been under pressure to maintain the financial viability of the business. Recently,The food delivery firm is testing a surge pricing model in Bengaluru and Hyderabad, charging a delivery fee of Rs.20 for orders placed on holidays, festivals and rainy days when fewer delivery staff are available.The fee will be passed on to the delivery staff, providing them an incentive to work on such days.

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