NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / After Swiggy raises $210mn, Zomato looks to raise $400mn
    Next Article
    After Swiggy raises $210mn, Zomato looks to raise $400mn

    After Swiggy raises $210mn, Zomato looks to raise $400mn

    By Shiladitya Ray
    Jun 22, 2018
    05:12 pm

    What's the story

    Competition in India's fast-growing food delivery market is intensifying.

    A day after Swiggy announced that it had raised $210mn from existing and new investors, Zomato has announced that it's in talks to raise a fresh $400mn.

    While Swiggy entered the unicorn club with yesterday's fund raise, the incoming $400mn will take Zomato's total valuation to above $2bn.

    Here's more.

    Swiggy funding

    Swiggy entered the unicorn club twice as fast as Zomato

    Yesterday's funding round which saw Swiggy raise $210mn was led by Russian billionaire Yuri Milner's DST Global, and existing Swiggy-backer, Naspers.

    The round increased Swiggy's valuation to $1.3bn, thereby making it a member of the elite unicorn club.

    Notably, Swiggy achieved this status in less than four years since its inception - less than half the time it took Zomato to achieve it.

    Zomato funding

    Zomato in talks with existing, and possibly new investors

    Meanwhile, it's believed that Zomato is in talks with existing investors Ant Financial Services Group and Holdings Private Limited, a subsidiary of Chinese e-commerce giant Alibaba, and Singapore's state investment firm Temasek.

    Interestingly, last month, the Economic Times reported that Japan's SoftBank was also in preliminary negotiations to invest in Zomato.

    Whether SoftBank will get involved, remains to be seen.

    Larger picture

    India's resurgent online food delivery market has big money interested

    Swiggy and Zomato's efforts to secure new funding, and the consequent interest by big investors point to a larger development - namely, the resurgence of the online food delivery market in India.

    Although it seems unbelievable today in 2018, India's online food delivery market had had a bumpy start, and had struggled up until 2017.

    Bumpy start

    Online food delivery in India saw a bumpy start

    Although the food delivery market was touted as hot property by industry experts during the start-up boom in India in 2015, the bubble burst pretty quickly.

    After a blazing start, companies like Zomato began to downsize, and many smaller start-ups shut shop or got absorbed by bigger ones.

    In fact, in 2016, the sector received less than $80mn, compared to $500mn in 2015.

    Bouncing back

    2017 saw the online food ordering sector bounce back

    Then came 2017, the year which changed it all for the sector.

    Indians started ordering in not just for lunch and dinner, but for all sorts of meals ranging from breakfast to snacks, and this was largely driven by bachelors, students, and even professionals' embracing of food tech.

    Between March and December 2017, food ordered online outside lunch and dinner hours, almost doubled.

    Looking ahead

    The online food delivery sector will see unprecedented growth

    After the brief period of consolidation and correction, the sector is now looking at unprecedented growth.

    From a mere $0.3bn in 2015, the sector is expected to grow at 90% CAGR to hit $4bn by 2020.

    This explains Uber and Ola's reported willingness to invest around $200mn each in their food business - UberEats and FoodPanda, respectively - and explains SoftBank's interest in Zomato.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    India
    Zomato
    Swiggy

    Latest

    Aamir Khan-Rajkumar Hirani to make biopic on Dadasaheb Phalke 3 Idiots
    Virat Kohli's Test retirement: Decoding his First-Class numbers Virat Kohli
    Trump says India has offered US a '0-tariff' trade dealĀ  Donald Trump
    'Safety over checks,' Mitchell Johnson advises Australians to skip IPL Mitchell Johnson

    India

    After Air India fiasco, Modi-govt now plans Coal India sale Air India
    Comio C1 Pro launched in India for Rs. 5,599 Reliance Jio
    Airtel offers unlimited calls for 168-days with Rs. 597 plan Bharti Airtel
    LK Advani's former-aide wants to see Rahul Gandhi as PM Rahul Gandhi

    Zomato

    Zomato takes a large bite of the profit pie India
    Areo, Google's hyper local services app gets launched in India India
    UberEATS and Zomato bid to acquire Runnr United States of America
    17 million accounts on Zomato 'hacked' India

    Swiggy

    Swiggy raises Rs. 642cr in its biggest funding round Indian Startups
    Swiggy to start delivering medicines, groceries to boost company volume Zomato
    7 start-ups that are currently hiring in Bengaluru India
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025