Swiggy will be engaging in more fundraising as the Bengaluru-based online food ordering company is in talks with investors to raise around $800 million, Entrackr reported.
SoftBank and Prosus along with “several other existing investors” are in talks to lead the round, valuing Swiggy at over $10 billion, according to the report, which cited unnamed sources. That would increase Swiggy’s valuation by 90%.
Rival Zomato went public with a $12 billion valuation.
Read more: Zomato Shares Skyrocket In India’s Stock Market Debut
Swiggy was last valued at $5.6 billion in July, the report stated. At that time, it had raised $1.25 billion in a round led by the SoftBank Vision Fund.
See more: Swiggy to Invest in Instamart After $1.25B Funding Round
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The company will likely be the first private company to be a “decacorn,” referring to a company that is valued at over $10 billion, by the end of the year, according to the report. Other companies that have attained that status include Byju’s and Paytm.
Swiggy has been scaling up its services for 15- to 30-minute grocery delivery with its Instamart service, the report stated. It also has a pick-up and drop-off service called Swiggy Genie, along with a subscription commerce business, Supr Daily.
Swiggy has a “significant lead” over Zomato for groceries, an unnamed source said in the report. Zomato hasn’t been able to build a grocery business and recently canceled its Zomato Market service.
In August, Swiggy was aiming to get the edge on Zomato as it added more elements to its grocery service.
Read more: Swiggy Pivots to More Grocery Delivery Services
Co-Founder Sriharsha Majety said at the time that nonrestaurant food delivery is around 25% of the company’s revenue, but Swiggy is trying to get that number to around 50% in the next several years. He said some of the company’s businesses are in a “really exciting place.”
