Food delivery platform Swiggy is in early talks to acquire hyperlocal delivery services startup Dunzo, even as it is in separate discussions with investors to raise a large round of funding that could see its valuation double to $10-12 billion, two people familiar with the developments said.
If the deal goes through, it could help Swiggy stake a greater claim in the groceries and hyperlocal delivery space, in which it currently has an offering called Swiggy Genie in some markets. Rival Zomato, which recently went public with a valuation of about $13 billion, has expressed interest in the space both through an in-house grocery delivery offering as well as an investment in Grofers.
