Food delivery major Swiggy’s door may hear another knock on the door for a potential investment soon after raising a $100 million Series F round from Naspers and Meituan-Dianping.
This time New York-based global technology hedge fund Coatue Management, along with Meituan-Dianping, and others are looking to pour in $50-100 million in the Bengaluru based foodtech major.
According to an ET report, Coatue has been talking to Swiggy for the past few months, even before the previous round of funding was closed. During the financing round, the foodtech firm was reportedly valued at $700 million.
The Chinese e-commerce firm contributed $40 million in that round, while the rest was contributed by the South African media giant Naspers.
Citing sources, the report mentioned that it is not clear if the latest investment will be an extension of the previous round or a new round. If the deal fructifies, the hedge fund will also be looking for a significant stake in the delivery startup.
Coatue’s and Meituan-Dianping’s interest will also be significant considering the fact that Swiggy’s arch-rival Zomato managed to secure $200 million from Alibaba last month. Besides, cab-hailing major Ola is also reportedly planning to make a significant investment in its subsidiary company Foodpanda, which it acquired in December last year.
So far Swiggy has raked in $225 million in total risk capital from the aforementioned investors including Accel India, SAIF Partners Bessemer, and three others. In December last year, Swiggy crossed 5 million order mark, while rival Zomato reportedly hovers around 3.5 million deliveries.
Meanwhile, on revenue front, Swiggy recorded 6 times jump in FY17 to Rs 133 crore from Rs 20 crore in previous fiscal. The major chunk of foodtech pie has been snatched by the duo, whereas Foodpanda and UberEats trying to grab the market with more investment.
A technology-focused hedge fund, Coatue is led by former Tiger Management executive Philippe Laffont and has over $15 billion in assets under management.
In 2015, it had picked up a small stake through a secondary purchase of shares in online classifieds portal Quikr. Importantly, Coatue Management is also one of the investors in Meituan-Dianping.
Besides, Coatue has also been an active investor in the ride-hailing space – with stakes in Grab in Southeast Asia, Didi Chuxing in China and Lyft in US.