Telecommunications and internet group SoftBank could invest up to $500m in India-based food delivery service Swiggy as part of a round that could reach $1bn, LiveMint reported yesterday.
SoftBank is in advanced discussions to invest between $300m and $500m according to four people familiar with the development, the talks having begun in the final quarter of 2018.
Swiggy operates an app-based food delivery platform that is active in some 200 Indian cities and urban centres. It also began trialling the delivery of consumer goods ordered through its platform, in February this year, through an initiative called Swiggy Stores.
News of the funding comes after news in January 2019 that Swiggy’s key rival in India, Zomato, is aiming to raise up to $1bn in a round likely to be led by be led by existing backer Ant Financial, e-commerce group Alibaba’s financial services affiliate.
Swiggy has so far secured almost $1.47bn in funding, most recently capturing $1bn in a December 2018 series H round that was led by a $660m investment from media and e-commerce group Naspers.
One source told LiveMint that SoftBank wanted to invest in either Swiggy or Zomato despite relatively high valuations, and that it favours Swiggy because it has ramped up its business more quickly, and because it views the Naspers investment as a validation.
Internet group Tencent, local services portal Meituan Dianping, Coatue Management, Hillhouse Capital, DST Global and Wellington Management also took part in the series H round, which was closed at a $3.3bn valuation.
The company’s first corporate funding came in an $80m series E round led by Naspers in 2017. It added $100m in a February 2018 series F led by Naspers that included Meituan Dianping, at a $700m post-money valuation.
Naspers and DST Global co-led Swiggy’s $210m series G round in June 2018, investing alongside Meituan Dianping and Coatue Management, valuing the company at $1.3bn. Its earlier backers include Norwest Venture Partners, SAIF Partners, Accel, Harmony Partners and RB Investments.
