Swiggy valued at $10.5 billion in $700-million Invesco-led round

Valuation has doubled since it was valued at $5.5 billion in April

Food delivery service Swiggy is raising $600 million to $700 million in a round led by Invesco that’s due to close this month, according to people with knowledge of the matter.

While Invesco will pour in $200 million, other existing investors such as Softbank Group will also participate, the people said, asking not to be identified as the details are private. The deal values Swiggy, formally known as Bundl Technologies, at about $10.5 billion, they added. 

Indian start-ups have raised about $10.9 billion in the quarter-ended September, according to Venture Intelligence and PwC India, as China’s crackdown makes the South Asian nation more attractive to global investors. Bangalore-based Swiggy competes with the likes of Zomato, which is backed by the Ant Group.

Swiggy is expected to follow Zomato with an initial public offering about a year or so later, one of the people said. Representatives for Swiggy and Softbank didn’t immediately reply to emails seeking comment. Invesco declined to comment.

The company has seen its valuation almost double since it was valued at $5.5 billion in April. It will use the new cash to strengthen its grocery delivery business, the people said.  

In July, Swiggy has closed a $1.25-billion fundraise round, marking the first investment in the category by SoftBank Vision Fund 2. This took the valuation of the Bengaluru-based startup up by more than 50 per cent to $5.5 billion from $3.6 billion earlier.

Swiggy CEO Sriharsha Majety had then said: “The scope of food delivery in India is massive and over the next few years, we will continue to invest aggressively into growing this category. Our biggest investments will be in our non-food businesses that have witnessed tremendous consumer love and growth in a short span.”