SoftBank in talks to invest around $450M in Swiggy
SoftBank is said to be in advanced talks on investing about $450 million in the food ordering and delivery platform Swiggy.
The deal is expected to secure the valuation of the Bengaluru-based firm at $5 billion, sources aware of the development said.
The food delivery startup had previously announced an investment of $800 million (around Rs 5,862 crore) by Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac, and Goldman Sach.
The expected deal was revealed in an email sent by the startup’s co-founder and CEO Sriharsha Majety to employees earlier in April.
The suggested investment comes at a time when competitor food ordering platform Zomato is looking to go for an initial public offering (IPO) during the year.
Swiggy was launched in 2014 by Sriharhsa Majety, Nandan Reddy, and Rahul Jaimini. It attained unicorn status in December 2017 and has more than 1,30,000 delivery partners (the foodtech startup had 2,20,000 delivery partners prior to the pandemic). Rahul no longer plays an operational role at Swiggy.
In his email to employees earlier this month, Majety had said, “Over the last year, thanks to all your efforts, we’ve managed to drive a strong recovery in the food delivery business with a very clear path to profitability.”
The food delivery business is the most solid it has ever been, and Swiggy is now on its way to make continued growth over the next decade, he had added. Genie — its new Dunzo-like feature that services any kind of delivery anywhere — is now present in 65 cities. Its grocery delivery platform Instamart is operational in two cities, and HealthHub, which focuses on healthy foods, is available in four cities.
Online food delivery services have seen a major hike in demand since the COVID pandemic. The possible funding could help the company in massively scaling its operations.Shishir Gupta, Founder and CEO, StartupLanes
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