India-based food delivery service Swiggy has reached the final stages of discussions to raise $700m to $750m in a round led by e-commerce and media group Naspers, LiveMint reported today.
Naspers is set to invest $350m according to people familiar with the matter, while investment manager STIC Investments and investment firm Korea Omega Investment are among a consortium of Korean entities contributing $50m.
One source said the funding will be closed at a valuation of about $4bn while another told LiveMint: “A total commitment of $540m has come so far. If existing or new investors do not give the remaining amount, Naspers may put in more.”
Swiggy runs an online platform where users can order food from local restaurants for home delivery. The company was present in 58 Indian cities by the end of 2018 but has ramped up in 2019, entering 185 towns since the turn of the year as it targets smaller urban centres.
The Economic Times reported last month that Naspers was in line to lead a $500m round for Swiggy that could include STIC as well as Doosan’s NeoPlux subsidiary, Korea Investment Partners and Mirae Asset Management, at a $4bn valuation.
Reports earlier this year suggested telecommunications and internet group SoftBank was weighing up a nine-figure investment in the company, but SoftBank is reportedly waiting for either Swiggy or its chief domestic rival Zomato to come out ahead before backing either.
Naspers provided $660m of the $1bn Swiggy raised in its last round, a series H that closed in December 2018 at a $3.3bn valuation. Internet group Tencent, local services portal Meituan Dianping, Coatue Management, DST Global, Hillhouse Capital and Wellington Management also invested.
Naspers’ first investment in Swiggy consisted of it leading an $80m series E round in mid-2017 that followed earlier backing from DST Global, Norwest Venture Partners, Accel, Harmony Partners, RB Investments and SAIF Partners.
The company added $100m from Naspers and Meituan Dianping in February 2018, before Naspers and DST Global co-led a $210m series G round featuring Meituan Dianping and Coatue Management in June.
