Swiggy, one of the leading food-tech startups in India, is reportedly gearing up to raise around $250 million in its new funding round. Earlier, there were reports suggesting that the Bangalore-based startup is looking to raise about $100-150 million funding.
According to the people aware of the matter, this development comes at a time when the company is witnessing increased investor interest. The company is now looking to raise more money and a higher valuation.
If the reports are to be believed, then the Bangalore-based Swiggy is looking to enter the unicorn status with this upcoming funding round. The startups which are valued at over $1 billion are called “unicorns”. Notably, in the last funding round, Swiggy was valued just below the $1 billion.
The company is believed to be in talks with South Africa-based technology conglomerate Naspers, Japanese internet conglomerate SoftBank, billionaire investor Yuri Milner’s DST Global, Chinese firms Tencent, Meituan-Dianping and Alibaba. However, a clear front-runner has not yet emerged.
A person who is aware of this development says that while the front-runner has not yet emerged, the only factor that’ll decide the front-runner is the valuation the company is getting and the funding amount that is being invested in the startup in this round.
Swiggy last raised funding in February this year in a Series F round, which was led by Naspers. It secured around $100 million (Rs 640 crore), its largest round till date. With that funding round, Meituan Dianping joined as a new investor in the round.
The startup was founded in August 2014 by Sriharsha Majety, Nandan Reddy and Rahul Jaimini. Majety and Reddy are BITS-Pilani alumni, while Jaimini is from IIT-Kharagpur. Currently, the startup competes with the likes of Foodpanda (which was recently acquired by Ola), Zomato, and FreshMenu, among others.