Stake sale · Commerce & Consumer Brands

Early Swiggy investors exit with 10x returns

By Startup Enthusiast · 14 January 2020

What they do

Early investors sold shares worth $222 million to late-stage investors including Naspers and Coatue

The secondary sales reflect growing investor confidence and a trend of early exits in startups

Promoters also sold shares worth $3 million to Tencent and others

Early investors of Swiggy received partial exits via secondary share transfers to late-stage investors over FY19.
The total exit value for early investors was $222 million (Rs 1,579.2 crore).
Buyers included Naspers Ventures, Inspired Elite Investments, DST Euro Asia, and Coatue PE Asia.
Selling investors included SAIF Partners, Accel Partners, Norwest Venture Partners, RB Investments, Harmony Capital, and Bessemer Venture Partners.
SAIF Partners received $61.8 million for its Series A investment of $5.9 million in 2015.
Accel Partners gained $25.2 million from its Series A investment, a 12.2X return.
Promoters Sriharsha Majety, Nandan Reddy, and Rahul Jamini each sold 310 equity shares, collecting $1 million each (total $3 million).

Secondary stake sales have become common in Indian startup ecosystem, with companies like Paytm, OYO, PolicyBazaar, Lenskart, BYJU's, and Dream11 offering early investor exits.
Swiggy's valuation grew from Rs 253.45 crore at FY16 end to Rs 21,725.4 crore, an 86X increase.
Revenue in FY19 was Rs 1,121 crore, up 2.7X from the previous year.

Swiggy is an online food delivery platform based in Bengaluru.
It connects customers with local restaurants through its app and website.
The company operates across hundreds of Indian cities.
It generates revenue from delivery fees, commissions from restaurants, and advertising.
Swiggy also offers cloud kitchens and grocery delivery services.

Naspers Ventures (buyer) — Global internet and media investment group.
Inspired Elite Investments (buyer) — Investment firm.
DST Euro Asia (buyer) — Investment firm focused on technology.
Coatue PE Asia (buyer) — Investment firm based in Asia.
SAIF Partners (seller) — Venture capital firm that invested in Series A in 2015; exited with $61.8 million.
Accel Partners (seller) — Venture capital firm; earned $25.2 million on a $2.06 million Series A investment.
Norwest Venture Partners (seller) — Venture capital firm; invested $3.2 million in Series B and exited with $56.6 million.
RB Investments (seller) — Investor in Series C (Jan 2016), earned $14.9 million on $1.7 million investment.
Harmony Capital (seller) — Investor in Series C (Jan 2016), earned $19.59 million on $2.3 million investment.
Bessemer Venture Partners (seller) — Venture capital firm; invested $6.8 million in Series D and exited with $44.12 million.
Tencent Cloud Europe (buyer) — Subsidiary of Chinese tech giant Tencent; bought shares from promoters.
HH BTPL Holdings II (buyer) — Investment holding entity.
MIH Investments (buyer) — Investment firm.