Swiggy close to raising $450 million from SoftBank Vision Fund

Softbank  Vision Fund is finalizing a new investment of $450 million in a popular food delivery application Swiggy. This has been decided after years of evaluation and analysis of the sector and industry. 

The reports say the new investment deal is likely to value Swiggy at $5 Billion. Moreover, it is the extension of the $800 million financing round that was announced by the CEO Sriharsha Majety, via email early this month. 

We already discussed the upcoming IPO by Zomato, at the same time Swiggy is ready with its exclusive fundraising round. 

The SoftBank founder Masayoshi Son has been engaged thoroughly with both the companies in the past few days and months to bet on the food delivery sector. 

SoftBank decided to support Swiggy due to its growth binding strategy and new plans to diversify its business. The firm is seeking more opportunities beyond food delivery and trying out its hands over other products and services. 

Another reason for SoftBank to invest in Swiggy is the successful IPO of DoorDash and the uptick seen by Uber Eats amid the global pandemic.  On the other hand, SoftBank’s other portfolio firms or invested ventures like GoPuff, an instant delivery app, have seen its valuation of $3.9 Billion in October 2020 to $8.9 Billion in 2021. 

At the beginning of April 2021, the CEO told its employees that the company had raised around $800 million in funds from investors. The series was led by Amansa Capital, Falcon Edge, Carmignac, Think investors, and Goldman Sachs.  Both the giants in the food delivery sector- Swiggy and Zomato recovered quite well after the global pandemic last year, and now also it’s rising in some parts of the nation. SoftBank wants to leverage the right opportunities at the right time. 

 

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