Softbank, Alibaba, Tencent & Flipkart Lining Up To Invest In Swiggy!
Swiggy currently holds the largest market share in the online ordering industry in the country.
After denying a potential merger with rival Zomato, Swiggy is riding high on their recent success. The Bengaluru based company continues to grow as one of the largest food ordering and delivery company in the country.
Swiggy currently holds the largest market share in the online ordering industry in the country. It competes strongly with Zomato, it’s closest rival, who has it’s own online delivery arm and primarily dominates with the online restaurants listings space in India.
Founded in 2014, Swiggy has raised close to $154 million from after six series of fundings so far. On the other hand, Zomato, which was founded in 2008, has raised around $223 million.
Swiggy is currently valued at a whooping $400 million, after it was recently funded $80 million by South African media giant Naspers back in May.
Fresh Investment For Swiggy
Japanese investment major SoftBank is planning to pick up a stake in Bundl Technologies, the owners of Swiggy, at around $200-250 million.
Not only SoftBank, but they are also in talks with some big Chinese companies and some strategic Indian investors as well. SoftBank is looking to invest around $200-250 million for a significant minority stake in the online food delivery startup Swiggy.
With that investment, the pre-money valuation of Swiggy will jump from $400 million to $600-650 million.
According to sources, Chinese Internet giant Tencent, which has recently invested in Flipkart, is also planning to co-invest in Swiggy. Tencent and Flipkart may invest $50 million each in Swiggy, taking the proposed deal to a $100 million.
Another Chinese major, Alibaba, the ecommerce giant under Jack Ma, is planning to co-invest in Swiggy along with its payments arm Ant Financial.
Alibaba’s proposed investment will pit it against its rival Tencent in the growing internet ecosystem in India, and also against Nasper, who owns PayU and has a major stake in Swiggy. Tencent recently crossed Alibaba to become the most valuable tech company in China.
Swiggy’s Strong Growth
They have declined to comment on any specifics, but the company made it clear that they are garnering continuous interest from investors due to their position in the market, steady growth and financial returns. They have always focused on delivering quality service, and will comment on the fund-raises and investments in opportune time.
Along with Swiggy, some Chinese strategic investors held investment discussions with the food-tech company’s closest rival Zomato to close a $200 million funding round.
This will push the potential valuation of Info Edge, owners of Zomato, to $1.1 billion.
Previously, Jack Ma backed e-commerce firm Alibaba and payments company Ant Financial tried for a potential merger between Swiggy and Zomato, eyeing a combined investment in merged entity.
The merger failed owing to differences in alignment of business and valuation metrics, and Swiggy denied a potential merger.
Swiggy’s strong growth of has proved to be a major factor behind it’s success among investors, and the graph is rising steadily as they continue to lead in the food-tech business space in India.