10-minute food delivery start-up Swish raises $14M
What's the story
Bengaluru-based 10-minute food delivery start-up Swish has raised $14 million (approx. ₹122 crore) in a Series A funding round. The round was led by UK-based Hara Global and saw participation from existing investor Accel. Notable angel investors such as Unacademy CEO Gaurav Munjal, Kunal Shah-led QED Innovation, and Softbank's Sumer Juneja also participated in the round.
Investor stakes
Hara Global and Accel to hold significant stakes
Post-funding, Hara Global will get a 13.33% stake in Swish, while Accel's stake will rise to 27.24%. The co-founders of Swish - Sureshkumar Sarana, Aniket Sunil Shah, and Ujjwal Sukheja - will continue to hold 16.28% share in the company. Notably, this funding round comes after Swish's last seed round where it raised $2 million from Accel last November.
Market competition
Swish faces competition in emerging food delivery sector
The rise of Swish comes as the 10-minute food delivery segment is getting more and more competitive. Swiggy's Bolt and Snacc, Zepto Cafe, and Bistro by Blinkit have all jumped into the segment. Even BigBasket is gearing up to enter the battle. The influx of interest from big players could make things difficult for smaller start-ups like Swish that don't have deep pockets or investor support.
Market analysis
Swish's rapid growth amid market challenges
Despite the increasing competition, Swish has been lauded as a pioneer in the 10-minute food delivery space. A partner at a leading venture capital firm said, "Swish was the company that spotted the 10-minute food delivery opportunity." However, he also warned that Swish needs to execute its strategy well to take on bigger players such as Swiggy, Blinkit, or Zepto.