The funding by SoftBank is an extension of the $800 million Swiggy raised earlier in April.

Swiggy delivery partner
Atom Funding Wednesday, June 09, 2021 - 15:42

SoftBank Vision Fund 2 (SVF 2) has sought approval from the Competition Commission of India (CCI) to invest in food delivery platform Swiggy. “SVF II proposes to acquire a certain shareholding percentage in Bundl. The Proposed Combination is notifiable to the Hon’ble Competition Commission of India under Sections 5(a) of the Competition Act, 2002 (sic),” the CCI order stated. Bundl Technologies is a private limited company that owns Swiggy. SVF 2 is a part of the SoftBank Group. SoftBank is looking to invest $450-500 million in Swiggy at a post-money valuation of nearly $5.5 billion. A source told Moneycontrol that a CCI approval is required for this deal as SoftBank has investments globally in the same sector, including in Grofers in India, which is in direct competition with Swiggy’s Instamart in the e-grocery space. 

As per the application filed by the two entities, the CCI order said, “The activities of the Parties’ do not exhibit overlaps in any of the plausible relevant markets in India. Therefore, the Proposed Combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India.” The funding by SoftBank is an extension of the $800 million Swiggy raised earlier in April with Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac and Goldman Sachs joining as new investors. Swiggy founder Sriharsha Majety had stated that the earlier round of $800 million funding "gives the company a lot more firepower than the planned investment for our current business lines". 

"Given our unfettered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investment later," he had told employees in an internal memo, adding, "We will just need to relentlessly invent and execute over the next few years to build an enduring iconic company out of India.” 

SoftBank's potential investment in Swiggy comes at a time when rival Zomato is moving forward on finalising an initial public offering (IPO) and has raised over $1 billion in the past year from investors, including Tiger Global and Kora Management. SoftBank’s bet on the hyperlocal delivery space has also been spurred by significant success in global investments such as DoorDash. During the DoorDash IPO in December last year, SoftBank’s $680 million investment in the company was worth $11.5 billion.