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.