Indian unicorn Swiggy in talks with SoftBank, others for up to $500m funding

Photo: Hemant Mishra/Mint

A day after acquiring small rival Scootsy in the on-demand delivery space, online food ordering startup Swiggy is again in the news for evaluating another round of fundraising.

Swiggy, which is among the latest Indian startups to enter the unicorn club, is in talks to raise up to $500 million that may fetch it a valuation of $2.5 billion, reported The Economic Times. A little over a month ago, the Bengaluru-based startup raised $210 million in fresh funding from new and existing investors led by South African media company Naspers Ltd and DST Global.

Chinese internet firm Meituan-Dianping also invested in the last funding round, along with new investor Coatue Management.

As per the report, Swiggy has held talks with a host of new investors including SoftBank, growth equity firm General Atlantic and a couple of Chinese hedge funds including Tybourne Capital and Hillhouse Capital for the new round. A few of Swiggy’s early investors may also sell shares in this round.

Swiggy’s aggressive approach seems obvious as it faces increased competition from archi-rival Zomato. In June, Mint had reported that China’s Ant Financial-backed Zomato Media Pvt. Ltd is in talks to raise $400 million, largely from existing investors Ant Financial and Temasek, at a valuation of as much as $2 billion.

India’s food-technology space, which had dried up with the exit of some of the known names such as Tinyowl, Yumist, and EatOnGo, seems to have made a comeback with the entry of Ola-Foodpanda, UberEats and Google Areo. According to data from startup tracker Tracxn, the foodtech space saw investment worth $370 million in the fiscal year 2017-18 up from $70 million in 2016-17, said The Times of India in a March report.

Zomato posts more than 10.5 million monthly orders across India and the UAE, while Swiggy does over 14 million orders in India. UberEats and Ola-backed Foodpanda deliver around 1.8 million and 1.2 million orders, respectively, as per industry sources, ET report said quoting sources.

Founded in August 2014, Swiggy operates in 15 cities including Bengaluru, Delhi, Mumbai, Pune, Hyderabad and Kolkata. It claims to have more than 35,000 restaurant partners on its platform and a delivery fleet of over 40,000. It had also acquired 48East, a Bengaluru-based Asian food ordering startup, in December last year.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.