Preparations are underway for a new round of funding from Swiggy. Competitor Jomato is also in the process of raising funds. This may show a new competition in the food delivery business.
There can be a big investment in online food delivery company Swiggy soon. The company is in talks with some investors. On successful completion of this negotiation, the Swiss Wealth Qatar Investment Authority and Singapore’s GIC and Global Alternative Asset Manager Falcon Edge can invest Rs 5500 crore in Swiggy.
Swiggy’s valuations may cross $ 5 billion
According to an Economic Times news, apart from these three, some other global investors and companies can invest in Swiggy. If these investors put money in Swiggy, then its valuation will be more than $ 5 billion. Earlier, in January 2020, there has been a large investment in Swiggy. At that time, Swipi was funded by Nespers and its valuation increased to $ 3.7 billion.
Competitor Jomato will also raise funds
Swiggy is trying to raise this fund at a time when its rival company Jomato will descend to raise funds through an IPO in the next few months. Jomota has recently restructured its capital base to raise 8.8 billion shares. The company had made it clear that it would try to raise funds of about $ 55 million before the IPO.
Analysts say that if Swiggy’s recent fund-raising effort was successful, this start-up would have a ready fund of one billion dollars, which would help it a lot in its operations. After the arrival of the Corona vaccine, the food delivery business may have registered a fast pace. This is the reason why this funding can prove to be very effective for Swiggy. Its competitor Jomato has also started raising funds afresh. This may see a new competition in the food delivery business.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.