Swiggy offers disinvestment of Rs 1,600 cr to its early investors
With investors increasing their stake in the company over the last few years, early backers of Swiggy have received partial exits from the firm.
Venture capital firms such as SAIF Partners, Accel Partners, Norwest Venture Partners, RB Investments, Harmony Capital and Bessemer Venture Partners have collectively raked in $222 million (Rs 1579.2 crore) as their shares were transferred to late-stage investors Naspers Ventures, Inspired Elite Investments, DST Euro Asia and Coatue PE Asia, according to Swiggy's regulatory filings.
The VC firms have collectively earned a 10X return on their combined investment of $22 million across Series A, B, C and D rounds over the years.
According to the regulatory filings, SAIF Partners received $61.8 million (Rs 439 crore) in FY19 from their investment of $5.9 million (Rs 42.15 crore) during Swiggy's Series A in 2015. At the same time, Accel Partners gained $25.2 million (Rs 179.1 crore) on its first investment of $2.06 million (Rs 14.66 crore), giving them a 12.2X return.
Mauritius-based Norwest Venture Partners managed to generate the highest returns as compared to other early backers of Swiggy. The VC firm had poured in $3.2 million (Rs 23.1 crore) in Swiggy's Series B round in 2015 when the share price had gone down 36% as compared to Series A. They too offloaded their investments alongside SAIF but managed a whopping 17.4X return on the transfer worth $56.6 million (Rs 402.3 crore).
Meanwhile, RB Investment and Harmony Capital had injected $1.7 million (Rs 12.26 crore) and $2.3 million (Rs 16.14 crore) respectively in the Series C round in January 2016. The two investors earned $14.9 million (Rs 106.4 crore) and $19.59 million (Rs 139.13 crore). Both investors scored over 8X return on the invested amount.
During Swiggy's Series D round in September 2016, Bessemer Partners had infused about $6.8 million (Rs 48.83 crore), which resulted in a return of $44.12 million (Rs 313.3 crore) for the Menlo Park VC firm.
This secondary exit follows a series of secondary stake sales that have taken place in the Indian startup ecosystem over the last 12-18 months. Companies including Paytm, OYO, PolicyBazaar, Lenskart, BYJU's and Dream11 amongst many others have recently offered divestment to their early backers.