Indian food delivery giant Swiggy in talks to raise funds at over $10 billion valuation – TechCrunch

Indian meals supply startup Swiggy is in talks to lift over $500 million in a brand new financing spherical that would worth it at over $10 billion, two sources acquainted with the matter instructed TechCrunch.

Atlanta-headquartered Invesco is in talks to guide — or co-lead — the brand new financing spherical within the Bangalore-based startup, which counts SoftBank Imaginative and prescient Fund 2, Falcon Edge Capital, and Prosus Ventures amongst its present traders, sources added.

A deal has not finalized but so the phrases might change, one in all them mentioned. Swiggy had no touch upon Monday. Indian information outlet CapTable first reported in regards to the fundraise talks.

The brand new fundraise talks come lower than three months after Swiggy finalized a $1.25 billion funding spherical at a post-money valuation of $5.5 billion. The startup’s chief rival in India, Zomato, had a stellar debut on Indian inventory exchanges this yr that paved the way in which for Indian client tech startups to discover public markets. Zomato’s market cap has surged to $14.5 billion on inventory exchanges, up from $5.4 billion valuation it had attained in non-public markets earlier this yr.

Swiggy, like its older rival Zomato, was severely hit by the pandemic. But it surely has recovered strongly in latest quarters, the startup mentioned in July. The worth of orders it was processing that month was 30% greater than these within the pre-COVID occasions, it mentioned.

Amazon additionally entered the meals supply area in India final yr, however, as a Zomato government talked about in a public discussion board this yr, the corporate has but to make inroads on this class. Amazon’s meals supply service is presently solely accessible in Bangalore.

At stake is India’s meals providers market, which is anticipated to achieve $97 billion by March of 2026, analysts at Bernstein wrote in a report back to shoppers this month.

Picture credit: Bernstein

“India meals providers market is giant and anticipated to achieve $97 billion by FY25. Organized meals service is rising quicker and anticipated to achieve 55% market share by FY25. We count on on-line penetration to increase to twenty% by FY25 and market dimension to achieve $20 billion rising at 46% CAGR. Vital a part of the expansion shall be pushed by new buyer acquisition and penetration into smaller markets. Zomato had 10 million month-to-month transacting customers (MTU) in FY20, anticipated to extend 5x by FY25 to ~50 million,” they wrote.

Swiggy’s latest wager — the growth into fast grocery supply — has additionally gained traction at a time when rivals within the area (Grofers and BigBasket) have both not seen such traction or have but to aggressively discover the area. Zomato, which invested about $100 million in Grofers earlier this yr, this month shut down a pilot program the place it was testing grocery deliveries.