Swiggy had said the investment would further accelerate the company’s strategy of growing its core food delivery business and creating new food and non-food adjacencies in 2021 and beyond.
Food technology platform Swiggy is in talks with existing and new investors to raise nearly $ 1 billion, to a valuation of over $ 10 billion, sources told CNBC TV 18. It’s almost double the $ 5.5 billion valuation the company only hit in July after a round raised from Softbank and other investors.
This will bring Swiggy closer to the nearly $ 15 billion market cap of rival Zomato. Zomato saw its valuation almost double from the valuation of around $ 8 billion at the time of listing on July 23.
Swiggy had closed a $ 1.25 billion fundraiser in July this year led by SoftBank Vision Fund 2 and long-term investor Prosus, with participation from existing investors, Accel Partners and Wellington Management.
Swiggy was valued at $ 5.5 billion at the time, sources told CNBC TV-18.
Swiggy had also recruited new investors, Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac.
The company said the latest fundraiser was heavily oversubscribed following strong investor interest.
Swiggy had said the investment would further accelerate the company’s strategy of growing its core food delivery business and creating new food and non-food adjacencies in 2021 and beyond. Sources said non-food verticals now generate 25% of the company’s revenue.
Zomato, on the other hand, has scaled back its non-food verticals by shutting down its grocery and nutraceutical businesses to focus primarily on the core food business.
First publication: STI