After settling the noise in the food-tech sector, the battle for supremacy in Indian foodtech space has shrunk between the two – Zomato and Swiggy. The two-way fight requires a lot of ammunition aka investment. And, both are raking in substantial funding to have an upper hand in the capital-intensive food delivery business.
Just within two months of raising a sizeable $100 million Series F round from Naspers and Meituan-Dianping, Swiggy is engaging in an advanced stage to strike a deal with DST Global. The deal which would reportedly be the largest (more than at least $100 Mn) one for the Bengaluru-based company, reports ET.
Previously, DST Global had invested in food delivery startups including Deliveroo as well as Meituan-Dianping.
The Tencent-backed company is also slated to become the twelfth Indian Unicorn if the ongoing talks get fructified. Besides Yuri Milner-led Russian investment firm, New York-based hedge fund Coatue Management, along with Meituan-Dianping have already been in talks to invest about $50-100 million in Swiggy.
So far, Swiggy has scooped up over $250 million in total risk capital from the aforementioned investors including Accel India, SAIF Partners Bessemer, and others. Importantly, Coatue has been talking to Swiggy for the past few months, even before the previous round of funding was closed.
During the last financing round, the foodtech firm was valued in the range of $650 to 700 million. The fresh round will spike Swiggy valuation by over 50 per cent in mere two months.
Two months ago, Alibaba-owned entity Alipay had pumped-in $200 million in the only Indian food tech Unicorn Zomato. Notably, the Gurugram-based company had crossed 5.5 million delivery mark this month while Swiggy is currently fulfilling 6 million orders.
With 45 per cent growth in revenue over the previous fiscal, Zomato had claimed $74 million topline in FY18. Swiggy is yet to give figures for the last fiscal but its revenue jumped 6 times to Rs 133 crore in FY17 from Rs 20 crore in 2016.