Thursday, November 26, 2020
More
    Home News Business Swiggy to raise $300 mn with Naspers investing over $150 mn: Report

    Swiggy to raise $300 mn with Naspers investing over $150 mn: Report

    Bengaluru-based food delivery giant Swiggy is raising an internal $300-million funding round from existing investors, with Naspers-owned Prosus Ventures likely investing over $150 million, as per the report.

    Popular

    Bhoomi And Osman Mir’s New Song ‘Utsav’ Portrays Indian Traditions

    Ace versatile singer Bhoomi Trivedi best known for her Bollywood songs Ram Chahe Leela (Ram Leela, 2013), Udi Udi Jaye (Raees, 2016), and Husn...

    Sushant Singh Rajput Fans Rage At Ranveer Singh For Allegedly Mocking Photon Reference

    The sudden demise of actor Sushant Singh Rajput sent shockwaves across the nation. Everyone mourned the death of the budding star and asked for...
    00:01:07

    Mahira Sharma Starrer Music Video Lehanga Crosses One Billion Views

    Bigg Boss 13 fame Mahira Sharma is currently on top of the world as her 2019 music video, Lehanga, crosses one billion views on...
    00:09:18

    Throwback: Grand Premiere Of Jodi No. 1

    Jodi No. 1 is a Hindi comedy film directed by David Dhawan. It stars Govinda, Sanjay Dutt, Twinkle Khanna and Monica Bedi in lead...
    00:01:40

    Taapsee Pannu Shares Her Ugly Experience In Bollywood

    Actor Taapsee Pannu who has given game-changing films to Bollywood has shared her ugly experience in the industry. Let us remind you that Taapsee...
    Ajay Nirmal
    Graduated from Mumbai University, Ajay brings in the latest news across sports, tech, and world news. Ajay loves talking on tech, latest news, and events.

    Online food delivery firm Swiggy is in talks to raise $300 million in internal funding from its existing investors, after several months of discussions with external investors including Japan’s SoftBank haven’t materialised, according to two people familiar with the matter.

    Prosus Ventures (formerly Naspers Ventures), which owns around 40% of Swiggy, is likely to invest over $150 million while the remaining will pour in from other existing investors, added the two people cited above.

    Swiggy has also held multiple conversations with several Korean funds over the last several months as the latter have been visiting India to make a few bets. Some of them, including STIC Investments and Mirae Asset are expected to infuse over $50 million together, added one of the two persons cited above.

    “Swiggy has been engaged with SoftBank for many months now. However, the discussion didn’t materialise as SoftBank is more keen on investing if Swiggy and Zomato merge,” said the people cited above on condition of anonymity.

    This comes at a time when reportedly Swiggy and Zomato have held merger talks, but it remains unclear if these conversations have moved forward. Moreover, some say that even if these potential merger talks reach a positive conclusion, the Competition Commission of India may pose a hurdle.

    This internal round, if and when it goes through, is important for Swiggy which has been burning close to $40-45 million a month and has been attempting at trimming the cash-burn, added the people mentioned above.

    “With the runway amount shrinking, focus internally is on profitability, removal of heavy discounts and adding charges to customers,” said one of the people above who is familiar with the firm’s operations. 

    Swiggy last raised $1 billion in December 2018 making it the largest funding round to have been witnessed in the Indian food delivery sector, which valued the firm at around $3.3 billion. The $1 billion included $800 million of primary capital and saw the participation of existing investors DST Global, Coatue Management and China’s Meituan Dianping along with new investors Tencent, Hillhouse Capital and Wellington Management Co.

    Since this round, Swiggy has been aggressively foraying into multiple avenues — milk delivery, expanding into small towns and cities, and also added Swiggy Stores, which provides other hyperlocal delivery services. This will help them diversify and use the delivery fleet more efficiently.

    Swiggy, Prosus Ventures, Mirae Asset, STIC Investments and SoftBank did not respond to queries sent at the time of publishing this story. We will update with responses once we receive them.

    Swiggy’s potential funding round also comes at a time when rival Zomato has been struggling to raise funds. According to a report, Zomato has received a commitment of $200 million from Ant Financial and is also in talks to buy out UberEats as it looks to strengthen its position. Swiggy was close to buying UberEats earlier this year, but the transaction did not go through due to tax issues.

    Both Swiggy and Zomato clock about 35-40 million monthly orders with UberEats a distant third player in the market.

    For latest entertainment news, bollywood news, hollywood news, celebrity gossips, latest movie reviews, entertainment news and gossips in hindi - follow Lehren on Facebook, Twitter and Youtube.

    ↓   Keep Scrolling for NEXT STORY   ↓

    Top Picks

    Football Legend Diego Maradona No More, Dies At 60 Years Old

    This is indeed a very sad and melancholic news for family, friends and fans of the football icon as Football legend Diego Maradona no...
    00:03:30

    Bigg Boss 14: “NO LOVE FACTOR”-Jaan Kumar Sanu On His Equation With Nikki Tamboli

    “NO LOVE FACTOR” Between Jaan Kumar Sanu & Nikki Tamboli! Jaan Kumar Sanu who recently got evicted from the show Bigg Boss 14 shares his...
    00:01:09

    45-Year-Old Shilpa Shetty Performs Headstand Like A Pro

    Fitness enthusiast Shilpa Shetty often motivates her fans by posting her yoga videos. In her latest post, she shared her journey of learning Shirshasana...

    Chhatisgarh’s Anupa Das Becomes Third Crorepati Of Kaun Banega Crorepati 12

    Third week in a row, Kaun Banega Crorepati Season 12 has found its next crorepati in Anupa Das, a humble teacher who hails from...
    00:01:33

    Watch: Taimur Learning Pottery With Mommy Kareena Kapoor

    Saif Ali Khan is currently in Himachal Pradesh to shoot for his upcoming film Bhoot Police. His wife Kareena and son Taimur also tagged...

    Also Read

    PhonePe gets $28 million funding from parent Flipkart

    Flipkart has invested $28 million in UPI payments app PhonePe in its latest funding round, two months after it received about $59.6 million from its Singapore entity, PhonePe Private Limited. The Bengaluru-based startup had also received $56 million from Flipkart in November last year.

    Here’s what companies are doing for employees who can’t work from...

    Several companies have allowed work from home for its employees after Coronavirus is declared a global health emergency. But ever wondered about people who can't work from home?

    Coronavirus outbreak: Swiggy takes a much needed step

    With an increasing number of positive cases of coronavirus, Swiggy issues an advisory for its customers, employees, and partners.

    Trending

    Bhoomi And Osman Mir’s New Song ‘Utsav’ Portrays Indian Traditions

    Ace versatile singer Bhoomi Trivedi best known for her Bollywood songs Ram Chahe Leela (Ram Leela, 2013), Udi Udi Jaye (Raees, 2016), and Husn...

    Sushant Singh Rajput Fans Rage At Ranveer Singh For Allegedly Mocking Photon Reference

    The sudden demise of actor Sushant Singh Rajput sent shockwaves across the nation. Everyone mourned the death of the budding star and asked for...
    00:01:07

    Mahira Sharma Starrer Music Video Lehanga Crosses One Billion Views

    Bigg Boss 13 fame Mahira Sharma is currently on top of the world as her 2019 music video, Lehanga, crosses one billion views on...
    00:09:18

    Throwback: Grand Premiere Of Jodi No. 1

    Jodi No. 1 is a Hindi comedy film directed by David Dhawan. It stars Govinda, Sanjay Dutt, Twinkle Khanna and Monica Bedi in lead...
    00:01:40

    Taapsee Pannu Shares Her Ugly Experience In Bollywood

    Actor Taapsee Pannu who has given game-changing films to Bollywood has shared her ugly experience in the industry. Let us remind you that Taapsee...