Foodtech platform Swiggy is in talks with existing and new investors to raise close to $1 billion, for a valuation of above $10 billion, sources told CNBC TV 18. This is almost double the valuation of $5.5 billion that the company touched only in July after a round raised from Softbank and other investors.
This will bring Swiggy closer to rival Zomato’s nearly $15 billion market cap. Zomato has seen its valuation nearly double from the $8 billion-odd valuation at the time of its listing on July 23.
Swiggy had closed a $1.25 billion fundraising in July this year led by SoftBank Vision Fund 2 and long-term investor Prosus, with participation by existing investors, Accel Partners and Wellington Management.
Swiggy was valued at $5.5 billion at the time, sources told CNBC TV-18.
Swiggy had also roped in new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments, and Carmignac.
The company had said the last fundraising was heavily oversubscribed following strong interest from investors.
Swiggy had said the investment will further accelerate the company's strategy of growing its core food delivery business and building new food and non-food adjacencies in 2021 and beyond. Sources said non-food verticals now bring in 25 percent of revenues for the company.
Zomato, on the other hand, has been paring its non-food verticals by shutting down its grocery and nutraceutical businesses to focus largely on the core food business.