The technology fund of Masayoshi Son-led SoftBank Group Corp is finalising a $450-million investment in the online food delivery platform at a pre-money valuation of $5 billion, ET
reported on April 16.
The funding is an extension of Swiggy’s $800-million round that saw participation from investors such as Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs.
SVF II filed the application with the Competition Commission of India () saying it intends to acquire a stake in Swiggy’s parent Bundl Technologies Pvt Ltd.
CCI’s approval, which can take up to a month, is procedural if a fund is investing in a company that has more than Rs 1,000 crore in assets, a person familiar with the filing said.
SVF went through a similar process when it invested in supply chain and logistics provider Delhivery.
SoftBank declined to comment.
According to the document filed with CCI, SVF has provided a competitive assessment of its digital payments and online advertising businesses, and the competitive landscape will not change as a result of its investment in Swiggy.
The potential investment from SVF II comes at a time when rival Zomato
is inching closer to an initial public offering (IPO), and has raised more than $1 billion in the past year from a slew of investors, including Tiger Global and Kora Management.
SoftBank’s interest in Swiggy and the larger food delivery sector was stoked by the successful IPO of DoorDash Inc and the uptick seen by Uber Eats in the US market.
The Japanese conglomerate has been eyeing the food delivery sector since 2017 and has held talks with both Swiggy and Zomato.
However, Swiggy’s plan to diversify beyond food delivery into groceries and daily essential services has worked in its favour to get SoftBank’s backing, people aware of the matter said.
Note: An earlier version of the story incorrectly stated that Swiggy has filed a notice with the Competition Commission of India (CCI) seeking its approval for an investment from Japan’s SoftBank Vision Fund II.