Swiggy in talks with South Korean funds to raise up to $500 million

Food delivery app Swiggy is in talks with South Korean funds including Korea Investment Partners, Mirae Asset Management, STIC Investments and Neoplux to stitch up a $500 million financing round, said two people aware of the development.

The round is learnt to be led by Swiggy’s largest investor, South African internet giant Naspers, which owns a stake of about 36% in the company, along with Tencent, one of the persons said. Apart from the primary capital, there’s a secondary share sale which is also being worked out, they said. The exercise is expected to value the company at around $4 billion, up from its $3.3 billion valuation previously.

Swiggy’s investment conversations come at a time when it is locked in a discounting war to fend off closest competitor Zomato, with both clocking about a million orders a day. Both have been burning up to $40-50 million monthly to acquire users in a cash-guzzling sector that has been reliant on discounting to ratchet up growth.

“Swiggy needs a large war chest to build a consumer facing logistics network,” said one of the persons. The five-year-old company is looking to expand its footprint across the country, especially in smaller towns and cities. In parallel, it’s also seeking to scale up its services beyond food delivery.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/swiggy-in-talks-with-south-korean-funds-to-raise-up-to-500-million/70221382