Online food delivery major Swiggy is looking to invest $100 Million in its micro-delivery venture, the company is also looking to lift funding for the subsequent phase of expansion. Swiggy is by now looking at 1 lakh daily deliveries in 6 major cities including Mumbai, Delhi-NCR, and Bengaluru, for orders of daily essentials, but now the company is looking forward to expanding its services to more cities this year.
According to the unconfirmed ET report the food delivery company is reportedly in talks with the South Korean venture for raising funds including the likes of Mirae Asset Management, Korea Investment Partners, STIC Investments and Neoplux for a $500 million funding round the year. This news comes in to notice amid on-going opposition with competitor Zomato to attain and maintain loyal customers. For now, Swiggy has proposed out specific plans to expand its business ventures as well. The company is also planning to enter into the synergistic services like grocery deliveries services etc.
For now, the food delivery app Swiggy is in talks with Korea Investment Partners, Swiggy has in the current past launched several fresh services, such as Swiggy Stores, business Swiggy Daily, cloud kitchens unit Swiggy Access and homestyle meals. Moreover, according to the latest media reports both Zomato and Swiggy are in talks with Japanese multinational SoftBank for funding their ventures.
To make things more interesting Mint reported in June that the US-based private equity firm Carlyle Group is also planning to participate in the next round of capital by investing $200 M. The South Korean funds will be used by Swiggy for numerous purposes, expanding its overall services by adding more cities and towns in its kitty. Swiggy and Zomato have to though compete with the confrontation being put up by the experts of restaurants which have approached the government with the objection that the deep discounting offers by these online food delivery startups are equivalent to unreasonable trade practice.
The government has now asked the companies to sort out the issue as soon as possible to make things correct. To resolve this issue the company has been expanding its revenue channels by reducing the discount offers and bringing in more duplicate orders as well as entering fresh verticals such as Swiggy Daily, Swiggy Pop, Swiggy Super, and Swiggy Stores.
“Swiggy needs a large war chest to build a consumer-facing logistics network,” said one of the spokesman. The 5-year-old food delivery major is looking to make bigger its footprint crossways the country; it’s also looking to extend up its company beyond food delivery services.