Week after closing $800 mn funding, Swiggy set to raise $450 mn more, this time from SoftBank

SoftBank Group is likely to invest in Swiggy at $5.5 billion valuation. The financing is said to be awaiting approval from regulators.

A food delivery rider for Swiggy sits on a motorcycle in Mumbai, on 3 February 2020 | Representational image | Photographer: Dhiraj Singh | Bloomberg

Bengaluru: SoftBank Group Corp. is investing in Swiggy at a $5.5 billion valuation, the second funding for the Indian food delivery startup in as many weeks as capital floods the world’s fastest growing internet arena.

The $450 million funding came from Masayoshi Son’s Vision Fund 2, a person familiar with the matter said. The financing awaits approval from Indian antitrust regulators, the person added, asking not to be identified talking about a private deal.

Bangalore-based Swiggy competes with multiple food delivery startups including fellow unicorn Zomato, backed by Ant Group Co. and Tiger Global, and the food delivery arm of Amazon.com Inc’s India unit, which recently unveiled its service to Prime members in dozens of zip codes in the city of Bengaluru, formerly Bangalore.

Swiggy had closed an $800 million funding round from investors including Falcon Edge Capital LP and Goldman Sachs Group Inc. about a week ago. That financing punctuated a historic week for India’s technology industry, when in the space of four days, investors minted at least six new unicorns or startups with a valuation of $1 billion or more. Representatives for SoftBank and Swiggy didn’t immediately respond to requests for comment.

The Economic Times reported earlier Swiggy was close to securing investment from SoftBank. Global investors such as Tiger Global and South Africa’s Naspers Ltd. see growing opportunity in the country’s startup scene. The nation of 1.3 billion people has seen the rapid adoption of smartphones in recent years, explosive growth of inexpensive internet services and a new generation of ambitious entrepreneurs.

The venture investments are helping to diversify India’s industry, best known for tech services companies such as Tata Consultancy Services Ltd. and Infosys Ltd. A Credit Suisse Group AG report last month found there are about 100 unicorns in India with a combined market value of $240 billion, in sectors from e-commerce and fintech to education, logistics and food-delivery.