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SoftBank in talks to invest up to $ 500 million in Swiggy – TechCrunch

SoftBank Vision Fund 2 is at an advanced stage of negotiations to invest up to half a billion dollars in food delivery start-up Swiggy, two sources familiar with the matter told TechCrunch. The new investment values ​​the Indian start-up at around $ 5.5 billion, according to the sources.

The new investment would come on top of the $ 800 million fundraiser Swiggy unveiled earlier this month. SoftBank began exploring investments in the food delivery space in India earlier this year and also looked at Swiggy’s rival, Zomato. But the investment firm picked Swiggy earlier this week, a person familiar with the matter said.

Swiggy and SoftBank declined to comment.

The new investment talks come as Zomato has raised $ 910 million in recent months as the Gurgaon-based company prepares for an IPO this year. The last tranche of investment valued Zomato at $ 5.4 billion. During his fundraiser, Zomato said he raises funds in part to fight “any mischief or price wars on the part of our competitors in various areas of our business.”

A third player, Amazon, also entered the food delivery market in India last year, although its operations are still limited to parts of Bangalore.

At stake is the Indian food delivery market, which Bernstein analysts expect to reach $ 12 billion by 2022, they wrote in a report to customers earlier this year.

After raising $ 800 million, Swiggy co-founder and managing director Sriharsha Majety told employees in a memo that the new fundraiser “gives us a lot more firepower than the investments planned for our sectors. current activity. Given our unhindered ambition, we will continue to seed / experiment with new offerings for the future that may be ready to invest later. We will just need to invent and execute relentlessly over the next few years to build a sustainable iconic business outside of India. “

He added in that memo that the startup’s long-term goal is to serve 500 million users over the next 10 to 15 years, pointing to Chinese food giant Meituan, which has 500 million people. users in transaction last year and is valued at over $ 100 billion. .

“We are coming out of a very difficult phase over the last year given Covid and have weathered the storm, but everything we do from now on must maximize the chances of long-term success,” he said. he writes.

Swiggy, which counts Prosus Ventures among its biggest investors, cut some jobs last year – just like Zomato – and cut back on its cloud cooking efforts as it tried to stay afloat during the pandemic, which had prompted New Delhi to impose a multi-month lockdown. .

TechCrunch reported on Wednesday that SoftBank Vision Fund 2 is also in talks to invest in Zeta. The investment firm, which also wrote checks to e-commerce giant Flipkart, tourism company Ola and low-budget hotel start-up Oyo, backed social commerce Meesho earlier this month.

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