What’s with these Venture Capitalists and PE investors? They go on putting money into businesses which might never make any money. They keep funding startups with no unique business model.
News has just come in that Bengaluru-based food delivery startup Swiggy has secured $210 million (about ₹1420 crores) in a Series G funding led by existing investor Naspers and new investor DST Global. The round will also see participation from Swiggy’s existing shareholder, Meituan-Dianping, and a new investor, Coatue Management. Earlier, reports had surfaced about Swiggy being in talks with Coatue Management and DST Global to raise funds and enter the unicorn club with a major boost in its valuation.
The Series G funding will enable Swiggy to quickly ramp up its supply chain network and expand to new markets while investing in core capabilities that enhance customer experience and the brand.
Swiggy had raised $100 million (about ₹675 crores) just four months back. Has this money already run out? The startup had raised $18.5 million (about ₹120 crores) in 2015, $57 million (about ₹370 crores) in 2016, $80 million (about ₹530 crores) the following year and has already raised $310 million (about ₹2095 crores) in 2018, with less than half the year over.
Does one really need more than ₹3100 crores in a food-delivery business, where there are no assets? WHAT HAPPENED TO FUNDING INNOVATION AND NEW IDEAS? I will cover this in my opening statements in a panel discussion on Venture Capital at the HORASIS INDIA MEETING 2018, on Monday at Malaga, Spain.