While Invesco will pour in $200 million, other existing investors such as Softbank Group Corp. will also participate, the people said, asking not to be identified as the details are private. The deal values Swiggy, formally known as Bundl Technologies, at about $10.5 billion, they added.
The Economic Times
was the first to report about this likely deal on Sept. 28.
The exercise is likely to catapult the valuation of the online food delivery company to as much as $10 billion, which is double the valuation
ascribed to the seven-year-old venture a few months ago, according to the ET report. If the deal fructifies, Swiggy will rank among India’s most valued privately owned startups.
The fundraising is being seen as a re-rating exercise for the Bengaluru-based firm in the aftermath of arch rival
Zomato’s listing, ET reported. The Gurugram-based restaurant discovery and food delivery currently has a market capitalisation of nearly $16 billion.
Indian startups have raised about $10.9 billion in the quarter-ended September, according to Venture Intelligence and PwC India, as China’s crackdown makes the South Asian nation more attractive to global investors.
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Swiggy is expected to follow with an initial public offering about a year or so later, one of the people said. Representatives for Swiggy and Softbank didn’t immediately reply to emails seeking comment. Invesco declined to comment.
The company has seen its valuation almost double since it was valued at $5.5 billion in April. It will use the new cash to strengthen its grocery delivery business, the people said.