SoftBank is in talks to invest up to half a million dollars in Swiggy, India’s food delivery startup. The Bangalore based startup is currently valued at around $5.5 Billion. Zomato which is another food delivery startup in India, has raised around $910 Million in the past few months and is planning for an IPO later this year. During its fundraise, Zomato said it was raising money partially to fight off “any mischief or price wars from our competition in various areas of our business.”
Amazon Food has also started its operation in Bangalore last year, but the market is dominated mostly by these two players. Zomato had acquired Uber Eats’ division of India, boosting its market share to 50%. Analysts at Bernstein expect the food delivery market in India to be worth $12 billion by 2022.
Swiggy’s co-founder and chief executive Sriharsha Majety told employees in a memo that the new fundraise “gives us a lot more firepower than the planned investments for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment with new offerings for the future that may be ready for investment later. We will just need to now relentlessly invent and execute over the next few years to build an enduring iconic company out of India.”
“We’re coming out of a very hard phase during the last year given Covid and have weathered the storm, but everything we do from here on needs to maximize the chances of our succeeding in the long-term,” he wrote.
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