Indian food delivery startup Swiggy is in talks to raise more than $ 500 million in a new round of funding that could value it at more than $ 10 billion, two sources familiar with the matter told TechCrunch.
Atlanta-based Invesco is in talks to lead, or co-lead, the new round of funding at the Bangalore-based startup, which counts SoftBank Vision Fund 2, Falcon Edge Capital and Prosus Ventures among its existing investors, added the sources.
A deal has not been closed yet, so the terms may change, one of them said. Swiggy had no comment Monday. The Indian news outlet CapTable first reported about the fundraising talks.
The new fundraising talks come less than three months after Swiggy finalized a $ 1.25 billion funding round with an after-money valuation of $ 5.5 billion. The startup’s main rival in India, Zomato, made a stellar debut on Indian stock exchanges this year, paving the way for Indian consumer tech startups to explore public markets. Zomato’s market capitalization has risen to $ 14.5 billion on the stock exchanges, up from the $ 5.4 billion valuation it had made in private markets earlier this year.
Swiggy, like Zomato, was severely affected by the pandemic. But it has recovered strongly in recent quarters, the startup said in July. The value of the orders it was processing that month was 30% higher than in pre-COVID times, he said.
Amazon also entered the food delivery space in India last year, but, as one Zomato executive mentioned in a public forum this year, the company has yet to make progress in this category. Currently, Amazon’s food delivery service is only available in Bangalore.
At stake is India’s foodservice market, which is expected to hit $ 97 billion by March 2026, Bernstein analysts wrote in a report to clients this month.
“The Indian foodservice market is large and is expected to reach $ 97 billion by fiscal year 25. Organized foodservice is growing faster and is expected to reach 55% market share in the Fiscal year 25. We expect online penetration to expand to 20% by fiscal year 25 and market size to reach $ 20 billion with growth of 46% CAGR. A significant part of the growth will be driven by the acquisition of new customers and the penetration of smaller markets. Zomato had 10 million monthly transaction users (MTUs) in fiscal 2020, and is expected to grow 5x in fiscal 25 to ~ 50 million, ”they wrote.
Some of Swiggy’s recent bets – expanding into express grocery delivery – are also gaining traction at a time when rivals in that space (Grofers and BigBasket) have not seen such traction or have yet to aggressively explore the space. Zomato, which invested about $ 100 million in Grofers earlier this year, closed a pilot program this month in which it was testing grocery deliveries.