Foodtech firm Swiggy is in discussions with current and fresh investors to raise nearly $1 billion, for a valuation of over $10 billion, sources told media. This is roughly double the valuation of $5.5 billion that the business reached only in July following a round raised from Softbank and other investors.
This will bring Swiggy closer to competing Zomato’s nearly $15 billion market cap. Zomato has observed its valuation almost double from the $8 billion-odd valuation at the time of its listing in July.
Swiggy had secured a $1.25 billion fundraising in July this year driven by SoftBank Vision Fund 2 and long-term investor Prosus, with cooperation by existing investors, Accel Partners, and Wellington Management.
Swiggy was valued at $5.5 billion at the time, sources told.
Swiggy had also roped in new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments, and Carmignac.
The firm had said the last fundraising was massively oversubscribed following strong attention from investors.
Swiggy had said the financing will further quicken the company’s strategy of spreading its core food delivery business and creating new food and non-food adjacencies in 2021 and ahead. References said non-food verticals now bring in 25 percent of revenues for the brand.
Zomato, on the other side, has been pruning its non-food verticals by closing down its grocery and nutraceutical businesses to concentrate extensively on the core food business.
