Media speculation is arife that India’s most valuable local startup Flipkart just might invest around $50 million in Swiggy, the restaurant aggregator and food delivery startup.
The report first came from The Ken citing anonymous sources and then picked up by other media outlets like VCCircle. The original story had also discussed the possibility of Chinese internet conglomerate Tencent making an additional investment for $50 million.
According to media reports the story could not be verified with any of the ecommerce startups named herein.
That Flipkart may be eyeing a diversification of investment reaching a food delivery sector comes as Flipkart now flush with capital is contemplating investing in more and more ecommerce businesses in various categories like a ticket booking platform, BookmyShow, a service aggregator, Urbanclap, and furniture companies, Urban Ladder and Pepperfry.
Flipkart recently raised an estimated $4 billion, and is trying to widen horizons beyond being just another online marketplace. That and the additional customer base that could be tapped with investments in other niche ecommerce platforms, Flipkart is apparently developing a messenger app, not unlike WeChat. It’s a messenger app conceptualized to be an aggregator of various services.
Not too long ago Flipkart announced its second venture into the grocery business with the soft launch of Supermart.
At present, Swiggy, stands as one of the better funded startups in foodtech. The startup has raised $154.67 million and its last round of funding in May 2017, it raised $80 million led by Naspers. Swiggy also counts Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners as investors.
For FY17, Swiggy reportedly registered six-fold rise in revenue to reach Rs 133 crore from Rs 20 crore the previous year. Losses also increased to reach Rs 205 crore in FY17 from Rs 137 crore the previous financial year.