After solidifying its position in the Indian ecommerce and cab aggregator space, Japanese conglomerate SoftBank is reportedly gearing up for a $200 Mn-$250 Mn investment in foodtech startup, Swiggy. With this, SoftBank has joined Flipkart and China-headquartered Tencent, both of which are holding discussions with the Naspers-backed online food delivery platform for a potential investment.
As per reports, SoftBank is looking to pick up a minority stake in Swiggy, in exchange for $200 Mn-$250 Mn. If successful, the investment would likely take place at a pre-money valuation of $600 Mn-$650 Mn.
A spokesperson for Swiggy stated, “Swiggy garners continuous interest from investors due to our market leadership position, strong growth and financial performance. We remain focused on delivering exceptional value to consumers, and will comment on fundraises at the opportune time.”
SoftBank, however, declined to comment on the development, calling it a “speculation”.
Chinese Internet giant Tencent is also reportedly looking to co-invest in the round, in addition to pouring an additional $50 Mn into Swiggy. This, according to sources, would take Tencent’s proposed investment in the online food delivery startup to around $100 Mn.
Joining the bandwagon is Jack Ma-led Alibaba, which has expressed interest in backing Swiggy through its payments arm Ant Financial. Interestingly, the ecommerce behemoth is currently engaged in talks with Swiggy’s chief competitor, Zomato, for a proposed $200 Mn investment. If fruitful, the round would value Zomato at about $1.1 Bn.