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SoftBank’s Vision Fund may put $400-$500 million in Swiggy – Times of India

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BENGALURU: After waiting in the wings for the last few years, SoftBank CEO Masaysohi Son seems to be close to taking a bet on India’s online food delivery market.
SoftBank’s Vision Fund 2 is in advanced stages of talks to invest around $400-500 million in Swiggy, two people close to the development said.
The investment is expected to value the Bengaluru-based Swiggy at a little over $5 billion. It would be on top of the $800 million Swiggy raised earlier this month, which TOI reported about in its April 6 edition.
Son, sources said, has been looking at both Zomato and Swiggy and is said to have met the founders of both the companies in the last few weeks.
Post that, Son seems to be inclined to back Swiggy.

Gurgaon-based Zomato is also aiming to launch an IPO later this year. Over two funding rounds, Zomato has raised over $900 million in the last 12 months. Zomato is now valued at $5.4 billion.
Amazon too has entered the food delivery space but its operations are limited to Bengaluru for now.
SoftBank has previously invested in US food delivery startup DoorDash, which recently went public.
SoftBank-backed Uber’s food delivery business under UberEats has also shown significant uptick in the US market.
In India, the online food delivery volumes have surpassed pre-Covid-19 volumes of last year. With a strong second wave of Covid-19 cases currently, food delivery platforms are expected to see further growth.
When contacted, spokespersons of both SoftBank and Swiggy declined to comment on the matter.
Earlier this month, SoftBank put around $250 million in social commerce startup Meesho as part of a $300 million funding, valuing it at a little over $2 billion.
SoftBank has now invested $8 billion in India’s digital economy through its Vision Fund 1 & 2, including the $2.5 billion it put in Flipkart and later sold for $4 billion to Walmart when the US retailer acquired Flipkart in 2018.
The SoftBank Group has invested more than $11 billion in India, according to industry estimates.
Swiggy is also expanding its grocery delivery offering through Instamart aggressively. It also houses the micro-delivery platform Supr Daily, which specialises in delivering grocery essentials every morning based on subscriptions.
“The food delivery business is the strongest it’s ever been, and we are now well on our way to drive continued growth over the next decade. In addition, some of our new bets like Instamart are showing amazing promise while we’ve also made strides in setting up some of our adjacencies for liftoff very soon,” Swiggy co-founder Sriharsha Majety said in an internal note to his team earlier this month.



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