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Naspers may invest $200 mn in online food-delivery company Swiggy

Talks between the company, Naspers and Tencent are advanced, according to one of the people

Loni Prinsloo | Bloomberg 

Swiggy
Photo: Wikipedia Commons

Ltd. is in talks to lead an investment of as much as 2.5 billion rand ($200 million) in India’s to increase its stake in the online food-delivery company, according to two people familiar with the matter. Africa’s biggest company by market value plans to team up with China’s to put together the new financing round, said the people, who asked not to be named as the information isn’t public. owns 33 per cent of Tencent, which drives profit growth at the and media company. The talks come after Larry Illg, the head of Naspers’s new investments unit, told investors at a meeting in in December that order volumes at have more than doubled year-on-year and that the global delivery industry is still at an early stage of development. and Tencent see significant opportunities to co-invest in India, Chief Executive Officer said in the same presentation, without mentioning Jane Yip, a spokeswoman for Tencent, didn’t respond to a request for comment sent by email and text message. invested an initial $80 million in in May. That preceded a 660 million-euro ($790 million) purchase of shares in Germany’s Delivery Hero AG in September.

The company also has interests in in and Mr Delivery in is one of many targeted by as it seeks investments to replicate the success of Tencent.

GEARING FOR A BITE OF YOUR PLATE

* Swiggy's orders have doubled year on year, told investors * is seen as a player that has executed its model well * Rivalry to heighten with new players, Ola's buy of Foodpanda * UberEats, Google Areo also entered, Zomato has cut losses * owns 33% in Tencent, sees opportunities to co-invest
is the largest delivery business in Talks between the company, and Tencent are advanced, according to one of the people. shares have gained more than 70 per cent in the past 12 months to 3,620.06 rand, valuing the company at 1.6 trillion rand ($129 billion). That’s less than the $179 billion valuation of the Tencent stake, and Van Dijk has pledged to try to close that gap. The stock traded 0.1 percent higher at 3,635.49 rand as of 9:39 a.m. in Johannesburg on Wednesday.

First Published: Thu, January 11 2018. 02:18 IST
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