InvestorQ : Swiggy is looking to raise another $500 million at a valuation of $10 billion. What’s the deal?
Deepa Salunkhe made post

Swiggy is looking to raise another $500 million at a valuation of $10 billion. What’s the deal?

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Juvina Maggie answered.
3 months ago
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India’s food delivery ecosystem recently saw a bumper listing of Zomato where it more than doubled investors’ money. Similarly, Swiggy has recently announced that it is planning to raise another $500 million at a valuation of $10 billion.

The funding round is stipulated to be led by US asset management firm Invesco, pushing Swiggy’s valuation to almost double the amount ascertained some months ago. Invesco is likely to contribute $150-200 million in the funding round, and the rest is expected to be contributed by Swiggy’s existing investors such as Softbank, Falcon Edge, and Prosus (formerly Naspers). In July 2021, Swiggy raised $1.25 billion led by Softbank and Prosus. In the funding round, which valued Swiggy at $5 billion, Softbank alone provided $450 million of the total funding amount.

If the funding round is successful, Swiggy’s $10 billion valuations will make it India’s third most valuable startup, only behind ed-tech firm Byju’s and fintech startup Paytm. In India, Invesco invests in companies and startups through its $50 billion Invesco Developing Markets Fund.

Recently, Invesco led a $100 million funding round in IPO-bound PineLabs and has done so in IPO-bound startups numerous times before. The recent listing of Zomato, which is a direct competitor of Swiggy, and the interest of Invesco in leading a fundraise is a potential signal that Swiggy could be looking to go public in the near future. As most other unicorn startups are looking to go public, Swiggy could also be one of them, looking to raise capital in the unprecedented bull run of the Indian stock market.
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