Tencent joins Naspers in a RM4b funding for Swiggy

By BLOOMBERG

JOHANNESBURG • Tencent Holdings Ltd joined Naspers Ltd in a US$1 billion (RM4.2 billion) investment in Indian food delivery service Swiggy, which gains a potentially valuable ally in China’s largest social media and gaming company.

Naspers led the financing, which snagged new backers Hillhouse Capital Group and Wellington Management Co in addition to existing investors DST Global, Meituan Dianping and Coatue Management LLC. The funding round, which Bloomberg reported on in October, marks Swiggy’s third for 2018 and largest to date. Naspers, Africa’s most valuable company, said it put up US$660 million.

“Swiggy has 10 times the number of orders per month since our first investment” in 2017, said Larry Illg, Naspers’s CEO of food and ventures. “Our latest round of capital will help to accelerate Swiggy’s journey of providing unmatched convenience in food ordering and delivery for Indian consumers.”

Swiggy is one of a clutch of fast-growing Indian start-ups capitalising on rapid smartphone adoption across the country. Its value was said to have risen to more than US$2 billion after Cape Town-based Naspers led two previous funding rounds, becoming the firm’s biggest shareholder.

Since the last funding six months ago, Swiggy has expanded to 42 additional cities in India, the company said in a statement.