Funding · Commerce & Consumer Brands

Swiggy in talks with Tencent for $700M funding

By Startup Enthusiast · 21 September 2018

What they do

Swiggy is in talks with Tencent to raise $700 million at a $2.5 billion valuation

It recently acquired Scootsy and SuprDaily to expand into hyperlocal delivery

The company plans to deliver groceries and medicines using its 30,000 riders

Swiggy is in talks with Tencent Holdings to raise $700 million.
The round values Swiggy at $2.5 billion.
Tencent is a Chinese internet conglomerate and already backs Meituan-Dianping, a Swiggy investor.
Swiggy recently acquired Scootsy, an on-demand delivery service in Mumbai.
It also acquired SuprDaily, a milk delivery startup in Mumbai, earlier this month.
The company is entering the hyperlocal delivery space beyond food.
It plans to deliver grocery and medicines in addition to milk.
Swiggy is exploring a service called 'Dash' that uses riders' free time (2-6 PM) for deliveries.

Swiggy had earlier raised $210 million in June 2018 led by Naspers and DST Global at a $1.3 billion valuation.
In February 2018, it raised a $100 million Series F from Naspers and Meituan-Dianping.
Tencent's investment would make it a major backer, similar to its role with Meituan-Dianping.
Swiggy had talks with SoftBank earlier but they did not proceed; SoftBank is more interested in Zomato.
The move mirrors Meituan-Dianping's diversification from food delivery into grocery, salon deals, and movie ticketing.

Swiggy is an online food delivery platform connecting customers with restaurants.
It operates in multiple Indian cities with a network of 30,000 delivery riders.
The company makes money by charging restaurants a commission on each order.
It also charges customers a delivery fee and offers a subscription service called Swiggy Super.
Swiggy has recently expanded into hyperlocal delivery of groceries, medicines, and milk.
It is testing a service called 'Dash' to utilise rider capacity during non-peak hours (2-6 PM).
The company has acquired Scootsy and SuprDaily to strengthen its hyperlocal capabilities.

Swiggy plans to use the funds to expand into hyperlocal delivery of groceries, medicines, and milk.
It is exploring a service called 'Dash' to utilise rider capacity during non-peak hours.
The company aims to diversify beyond food delivery, similar to its backer Meituan-Dianping.

Tencent Holdings (lead) — Tencent is a Chinese multinational conglomerate and a backer of Meituan-Dianping.