Food ordering platform Swiggy is in initial talks to acquire delivery services startup Dunzo. It is in separate discussions with investors to raise a sum that will double up its valuation from about $5.5 billion to $10-12 billion.
Swiggy is looking to expand its delivery catalogue to also include non-food services in order to compete with rival Zomato. The Deepinder Goyal-helmed company recently listed on the bourses at a valuation of $13 billion.
A person in the know told Hindustan Times that Swiggy is in preliminary talks but there is no definitive agreement that’s signed as yet.
Swiggy is yet to comment on the developments, while Dunzo founder Kabeer Biswas said that the company does not respond to hearsay and that its focus is on Dunzo’s fast growth.
Swiggy had recently raised $1.25 billion in a funding round led by Softbank Vision Fund 2 and Prosus. New investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac also participated in the round.
Besides food delivery, Swiggy also offers instant grocery delivery service through Instamart and has expanded its pick-up and drop service, Swiggy Genie, to 65 cities.
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