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.
“Swiggy is in preliminary talks, but there is no definitive agreement signed as yet,” one of the two people said on condition of anonymity. The firm is raising a large round, which is expected to take its valuation to $10-12 billion, the second person said, also requesting anonymity.
In a written response, Dunzo founder Kabeer Biswas said that his company does not respond to hearsay and that his focus continues to be on the fast growth of the business. An email sent to Swiggy went unanswered at the time of going to press.
Categories: Corporate M&A