India-based food delivery company Swiggy is in advanced talks to raise Rs 960m ($15m) in series A funding from bank-backed venture capital firm Norwest Venture Partners, the Economic Times reported on Wednesday.
Norwest, which is funded by financial services firm Wells Fargo, could potentially also increase the size of its investment to $20m, a source told ET. Investment firm Tiger Global Management was also interested in investing in Swiggy, but lost out to Norwest.
The new round would follow Swiggy’s Rs 120m seed round, which was funded by VC firms Accel Partners and SAIF Partners last month.
Swiggy operates a food delivery service in Bengaluru, growing from two neighbourhoods in February this year to 12 today and currently processes more than 1,500 orders each day. The company hopes to soon cover the entire city, which has a population of approximately 8.5 million people.
Founded in August 2014, Swiggy has also launched its service in Gurgaon and plans to shortly enter Hyderabad, Mumbai, Pune and the entire metropolitan area of Delhi. Its competitors include FoodPanda-owned TastyKhana, which already covers 173 cities across India.