Online food ordering startup Swiggy raises $2M from SAIF & Accel Partners
Bangalore-based Bundl Technologies Pvt Ltd, which owns and operates online food ordering startup Swiggy.com, has raised $2 million (Rs 12.5 crore) from SAIF Partners and Accel Partners in a seed round, the company said.
It will use the funds for team and geographical expansion.
"Getting high quality food delivered expeditiously is a huge problem in India. We tracked this space closely and found the Swiggy team doing a fantastic job in filling this need," said Anand Daniel, partner, Accel Partners.
Mukul Arora, principal, SAIF Partners, added that Swiggy has a differentiated value proposition in a fast growing segment.
The startup was founded in August 2014 by Sriharsha Majety, Nandan Reddy and Rahul Jaimini. Majety and Reddy are BITS Pilani alumnus. Jaimini has done his higher studies from IIT Kharagpur.
The startup offers online ordering from restaurants in the Koramangala neighbourhood of Bangalore and manages delivery using a fleet of personnel equipped with smartphones with an app powered by routing algorithms.
Over the past few months, the online food ordering space has been attracting a lot of investor interest.
There are two sets of ventures with one essentially connecting consumers with local restaurants and either just comes across as an ordering platform (Foodpanda, Tinyowl and others) or even manages delivery (Swiggy and Mealsonwheels). Rocket Internet-incubated Foodpanda is by far the dominant player in the business, having acquired local rivals TastyKhana and JustEat in India last year.
The other set connects consumers to independent chefs or offers food ordering from in-house kitchens-Bite Club, Yumist and SpoonJoy.
(Edited by Joby Puthuparampil Johnson)