Mirae Asset Daewoo Co. Ltd. has led a $23 million investment in Indian food delivery platform Swiggy by South Korean companies in their first investment in the startup.
Mirae Asset’s Indian unit, Ark Impact Asset Management Co. Ltd. and two venture capital firms – Korea Investment Partners Co. Ltd. and Samsung Venture Investment Co. Ltd. – participated in the financing, according to investment banking sources on April 7.
That is part of the $43 million funding that Swiggy has recently raised from its existing investor Tencent and the four Korean companies for business expansion.
The latest financing brought its total fundraising to $1.42 billion since its inception in 2014 and valued the company at $3.6 billion.
It came on top of the $113 million the Indian startup had secured in February from Prosus Ventures, its largest investor, and others as part of the ongoing Series I round.
“Swiggy has established itself as No.1 player in India’s duopolistic food delivery market, and appears to have room to improve its profitability significantly,” said one of the Korean investment companies sources. “We made the investment on expectations of further increase in its corporate value.”
India’s food delivery market is expected to continue to grow with the increasing smartphone and Internet penetration into the population of nearly 1.4 billion.
Swiggy has been expanding delivery services into fresh food, medicine and household items.
By Chaeyeon Kim and Gowoon Lee
<Edited by Yeonhee Kim>