Top online food delivery companies Zomato and Swiggy are both in the race to raise capital. This is due to the discount war to gain the market among the two companies endures. However, Swiggy to reach $500-600 ML led by previous backer Naspers with the partnering of fresh investors like Google.
Though, Zomato to reach $500-600 ML, told five sources on the matter, comprising investors and company executives.
Hence, Swiggy is to be looking at an estimate of around $ 4 billion for this round. It was $3 billion last round which was announced in December 2018. However, Google, besides various other strategic hedge funds and investors are in talks with capitalize US$40-50 million each. Though, the round will see the highest cheque which is coming from South African media giant Naspers. It already owns the 3rd of the company.
However, at the same time, Zomato is looking estimation of over $3.1 billion from $2.1 billion this year.
One of the investors said that “Swiggy and Zomato are out in the marketplace at the same time. It let potential investors assess them against each other. Both deals are still not confirmed, the sources said. Zomato and Swiggy contend with the food delivery unit of Ola and Uber.
However, the new capital increase by both companies comes as both are dropping $30-50 ML per month on incentives and discounts. Whereas, both companies have held several rounds of deliberations with the SoftBank Vision Fund from last year.
Both Zomato and Swiggy have now hostilely expanded into smaller towns since the last one year. This is because of their increasing brand awareness due to national advertising campaigns. However, Zomato recently states that our service is presently more than 300 cities, and adding 100 more cities within just two months. And Swiggy is also currently operating in more than 100 cities.