News Update

SoftBank’s $450M Investment In Swiggy Approved By CCI

• BySheetal Sidhu     |    July 13, 2021

The Competition Commission of India (CCI) has given its nod for a proposed deal involving SoftBank Group entity purchasing a stake in food ordering and delivery platform Swiggy. SVF II Songbird (DE) LLC would acquire certain shareholding percentage in Bundl Technologies Pvt Ltd, according to a notice filed with the regulator. SVF belongs to the SoftBank Group and is a newly-incorporated entity set up to make mid to long-term financial investments in companies. Bundl is a private limited company incorporated in India and is engaged in operating Swiggy, as per the notice.

The approval by CCI is part of the fundraising plans of Swiggy where SoftBank is reportedly looking at investing around $450 million at a valuation of $5 billion. SoftBank had put in a application seeking the approval of CCI for this transaction last month. In a tweet, CCI said it has approved the “proposed acquisition of certain stake in Bundl Technologies (Swiggy) by SVF II Songbird (SoftBank Group entity)”. According to media reports, this funding round is likely to be an extension of the $800 million round into Swiggy, which had witnessed the participation from investors such as Falcon Edge, Amansa Capital, Think Investments, Carmignac, and Goldman Sachs.

These developments come amidst a time when the online food delivery business in India has turned into intense competition between Swiggy and Zomato. Both these players have also extended their services beyond food delivery getting into grocery segment.

Follow Startup Story