INDIA – India food-tech startup Swiggy is finalizing a new financing round where it targets to raise between US$500 and US$600 million, ET Retail has reported.
The exercise is likely to catapult the valuation of the online food delivery company to as much as US$10 billion, which is double the valuation ascribed to the seven-year-old venture a few months ago.
If successful in its latest endeavor, Swiggy will rank among India’s most valued privately owned startups after ed-tech firm Byju’s and fintech major Paytm, which is slated to go public later this year.
The latest financing for Swiggy comes close on the heels of its arch-rival Zomato’s bumper IPO and is being seen as a re-rating exercise for the Bengaluru firm that is presently valued at US$5.5 billion.
US asset manager Invesco is likely to plough in about US$150-200 million, while existing investors in Swiggy like Falcon Edge, SoftBank Vision Fund, Prosus (formerly Naspers) will pump in the rest of the capital, ET retail reported citing people with knowledge of the matter.
Swiggy restructures Supr Daily
Meanwhile, Swiggy has announced that it has spun off its subscription-based service Supr Daily into a separate unit to enable it unlock the delivery potential of the business.
Phani Kishan, the newly elevated co-founder, will take over the reins of the business unit as Supr Daily’s cofounders Puneet Kumar, Shreyas Nagdawane and Rohit Jain exit the company.
Kishan, part of Supr Daily’s board since acquisition by Swiggy in 2018, has been working with the team operationally for the past few months.
Supr Daily will mirror the structure of food delivery, Instamart and private brands business, “and work more closely to unlock its potential”, Swiggy founder Sriharsha Majety said.
In its recently released Q2 financial results, Supr Daily registered a gross merchandise value of Rs 165.9 crore (US$15m), compared to Rs 118 crore (US$10.6m) in the previous three-month period.
In April, Supr Daily launched three new categories—home and cleaning, personal care, and wellness and health—which resulted in a spike in number of subscriptions, according to the company.
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