After Zomato’s stellar debut on the Indian stock exchanges in July 2021, Bengaluru-based foodtech major Swiggy is reportedly looking to catch up with Zomato in terms of capital raised and valuation. The foodtech platform is in advanced talks to close a new round of $500-600 Mn at a targeted valuation of $10 Bn from US-based asset maker Invesco.
When Zomato was gearing for the IPO, Swiggy had closed a $1.25 Bn Series J round led by SoftBank Vision Fund 2 and Prosus (formerly Naspers) with new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac, and existing investors Accel Partners and Wellington Management. The Series J round had been closed at a valuation of $5.5 Bn, a source had told Inc42.
As the startup eyes the decacorn club (valuation > $10 Bn), Invesco is likely to invest about $150-200 Mn, while existing investors in Swiggy like Falcon Edge, SoftBank Vision Fund, Prosus will pump in the rest of the capital, according to ET.
The investment from Invesco, currently in news during the Zee-Sony mega-merger, also points to Swiggy’s interest in exploring the public listing route. Further, Swiggy will be the first startup to attain the decacorn status in 2021 — with BYJU’s, Flipkart and IPO-bound Paytm being the only “startups” on the list. IPO-bound OYO is currently valued at $9.6 billion.
Restaurant aggregation and food delivery apps (or foodtech) have not only changed the way we consume but also impacted how the traditional restaurant industry functions at a fundamental level. Currently, the Indian consumers place around 2.2-2.5 Mn orders a day, and to service this demand, the restaurant business across the country has undergone a huge transformation.
A recent report by Google and Boston Consulting Group (BCG) showed that India’s online food ordering market is expected to grow at a compound annual growth rate of 25-30% to touch $7.5 Bn–$8 Bn by 2022.