Double the valuation given to a seven year old enterprise a few months ago. If the deal is successful, Swiggy will be among India’s most valuable privately owned startups after edtech firm Byju’s and fintech major Paytm.
Expected to go public later this year.
The latest financing for Swiggy comes close on the heels of its arch-rival
Zomato’s bumper IPO And it is being seen as a re-rating exercise for the Bengaluru firm, which is currently valued at $5.5 billion.
Invesco is likely to raise around $150-200 million, while existing investors in Swiggy such as Falcon Edge, softbank vision fund, as mentioned above, Prosus (formerly Naspers) would pump in the rest of the capital.
Can explore public listings
recently,
Invesco leads $100 million fundraise in IPO-bound PineLabs, an enterprise-focused payment platform.
Invesco’s interest is an indication that Swiggy may explore public listings in the next few years, according to sources, who said the fund is exploring opportunities in the fast-growing technology sector in India.
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Other crossover funds (which Investment in the public and private markets) such as Fidelity, T Rowe Price, Bally Gifford, among others, have been betting on big Indian Internet startups over the past year, as many local venture capitalists look to tap the market.
“As a direct competitor
And being neck and neck in terms of market share, the valuation of Swiggy is looking low,” said another source, who did not wish to be identified.
Shares of Zomato closed nearly 5% higher at Rs 143.55 on the BSE on Monday, with a market cap of around $15.16 billion (Rs 1.12 lakh crore).
Invesco, which is a significant shareholder in Zee Entertainment Enterprises Ltd, has also been in the news in recent times.
Zee chief executive and managing director Puneet Goenka’s exit demanded As well as some independent directors on the board of the troubled media conglomerate, in a rare act of shareholder activism in the country.
zee group
Merger deal with Sony Pictures Networks India Last week.
Emailed queries to Swiggy CEO Sriharsha Majety And an Invesco spokesperson did not respond as of press time on Monday.
Last month, SoftBank founder Masayoshi Son said in a post-earnings presentation that a listing by its portfolio company
Swiggy can also give ‘good returns’. SoftBank Vision Fund was
Led a $450 million round in a Bengaluru-based company In July, as part of a funding round totaling $1.25 billion. In his presentation, Son said that Swiggy was receiving 1.5 million orders a day and had around 20 million monthly active users. Describing the company as a “convenience delivery platform”, he said, Swiggy’s revenue grew 2.8 times between June 2020 and June 2021, while daily orders grew 2.5 times. He did not provide full numbers on Swiggy’s revenue.
ETtechin one
Interview with ET in JulySwiggy’s Majety said 25% of the company’s revenue was coming from non-food delivery businesses, which it plans to grow further over the next five years. Majetti said Swiggy plans to use the $1.25 billion in new funding to invest heavily in non-food verticals such as hyperlocal grocery and essential delivery service Instamart.
Swiggy Instamart has expanded to 11 cities including Delhi-NCR, Hyderabad, Chennai, Mumbai apart from Bangalore. It also runs a different
Subscription based platform Super Daily, acquired in 2018 for morning delivery of essential items like milk, bread and other grocery items.
The company plans to expand its existing customer base in the food delivery segment to become a last mile convenience and logistics player in categories beyond food delivery to other delivery businesses such as Instamart and SuperDaily. Swiggy also runs a pickup and delivery service under Genie that competes with the likes of Dunzo.
On the food-delivery front, both Swiggy and Zomato are on an aggressive discounting spree to expand market share on the back of increased adoption due to the Covid-19 pandemic. “We are going to be aggressive not only on discounts… but also on our own investments in non-food and food. That was the plan and that would be the plan,” Majeti was
told ET in July interview.
ETtechBig fundraising by IPOs of Swiggy and Zomato, as well as expansion in kirana and on-demand delivery by food-delivery players, come between a
Delivery partners react to microblogging platform Twitter.
They have alleged exploitation by Zomato and Swiggy, including low wages, lack of compensation for skyrocketing petrol prices, lack of long-distance return bonus, and daily earnings caps. Earlier this month, The Indian Federation of App-Based Transport Workers (IFAT) had filed a Public Interest Litigation (PIL) in the Supreme Court, seeking to “hold app-based companies accountable”, including Swiggy and Zomato Was. and livelihood” of drivers and delivery workers affected by the Covid-19 pandemic. According to the petition, the ‘right to social security’ is a guaranteed fundamental right for all working people, irrespective of whether they are employed in the formal or informal sector.