Swiggy eyes Dunzo acquisition; plans delivery expansion

Food ordering platform Swiggy is said to in discussion to procure delivery services startup Dunzo. It is in separate negotiations with investors to secure a sum that would double up its valuation from about $5.5 billion to $10-12 billion.

The food delivery platform is intending to expand its delivery catalogue by including 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 close source has also revealed that Swiggy is in preliminary talks but there is no definitive agreement that’s signed as yet.

Swiggy has not  yet commented on the developments, while Dunzo founder Kabeer Biswas states 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.