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Food-tech startup Swiggy could raise funding from SoftBank, Flipkart and Tencent

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Bangalore-based food delivery startup Swiggy is in talks with SoftBank as well as with Flipkart and Tencent to raise funding.

Swiggy, the food delivery startup that is competing against the likes of Zomato, is reportedly in talks with various investors for a new funding round.

A new report from Economic Times suggest that Japan-based SoftBank has also shown interest to pick up stake of the Bangalore-based food-tech startup. SoftBank could invest around $200-250 million in the company.

However, SoftBank is not the only that that is hoping to pick up a minority stake in Swiggy. The food-tech startup is also reportedly in talks with Bangalore-based eCommerce firm Flipkart and China-based Tencent.

If the talks turns out successful, the investment in Swiggy could be made at a pre-money valuation of around $600-650 million. Flipkart and Tencent are expected to co-invest in the food delivery startup, with each of them pumping in around $50 million, taking total to $100 million.

It is noteworthy that Tencent is also an investor in Flipkart. The China-based giant invested in the homegrown eCommerce firm earlier this year, along with Microsoft and eBay, in a funding round worth around .

Interestingly, Alibaba and its payments arm Ant Financials is also exploring investment opportunity in Swiggy. Tencent and Alibaba, both are aiming to have a significant market share in the Indian internet ecosystem.

Previously, Swiggy and Zomato were said to be exploring a possible merger, but the talks failed owing to differences in business alignment and valuation metrics.

Earlier this year, in June, Swiggy raised around ₹500 crore in a new funding round from Naspers, along with the company’s existing investors Accel India, SAIF Partners, Bessemer Venture Partners, Harmony Partners and Norwest Partners.

 

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