Zomato and Swiggy both raise funds – but Swiggy leads with a higher valuation

  • Zomato raised $5 million in funding from Pacific Horizon Investment Trust.
  • Meanwhile, today Swiggy also announced that it raised an additional $43 million as a part of its ongoing Series I round.
  • Zomato’s latest funds take its valuation to $3.25 billion, according to reports. However, it still falls short of Swiggy’s $3.6 billion valuation.

Even as most startups are facing the heat of depressed funding, two unicorns raised funds today. Foodtech unicorn Zomato raised $5 million from Pacific Horizon Investment Trust. The fund is managed by British investment manager Baillie Gifford, who had earlier invested in Flipkart.

But not far behind is its rival Swiggy. Today, Swiggy announced that it has raised an additional $43 million as part of its ongoing Series I round. The size of the round now stands at $156 million. Along with existing investor Tencent, new investors Ark Impact, Korea Investment Partners, Samsung Ventures and Mirae Asset Capital Markets participated in this round.

“We are humbled by the faith shown by our investors year-on-year and welcome the new investors on board. Our focus remains to execute on our vision while building a sustainable path to profitability,” said Rahul Bothra, CFO, Swiggy in a statement.

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Zomato’s latest funds take its valuation to $3.25 billion, according to reports. However, it still falls short of Swiggy’s $3.6 billion valuation. Interestingly, Zomato's total fundraise so far stands at $900 million, whereas Swiggy has raised the twice amount with $1.6 billion.

The food war

Both Zomato and Swiggy have raised fresh funds this year. In January, Zomato had raised $150 million from Ant Financial. In February, Swiggy had raised $113 million from led by existing investor Prosus N.V. along with participation from Meituan Dianping and Wellington Management Company.

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The companies haven’t closed the rounds. While Zomato is raising $600 million as announced by its founder and CEO Deepinder Goyal had said at an event in December 2019, details of Swiggy’s Series I round are not known.

In January 2020, Zomato acquired UberEats in an all stock deal. The deal which gave Uber a 9.9% stake in Zomato, resulted in its market share rising to 55%, sources told Business Insider. However, another source told Business Insider that Swiggy continues to hold a bigger share of the revenue at 60%.

See Also: Zomato rolls out its grocery delivery service – Zomato Market
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