SoftBank seeks CCI approval for Swiggy investment

A spokesperson for SoftBank declined to comment.

SoftBank has filed a submission with the Competition Commission of India (CCI) seeking approval for a proposed investment in food tech firm Swiggy.

“SVF II (SoftBank Vision Fund II) proposes to acquire a certain shareholding percentage in Bundl. The proposed combination is notifiable to the Competition Commission of India under section 5(a) of the Competition Act, 2002,” the CCI filing read. Bundl Technologies owns Swiggy.

SoftBank is looking to back the Bengaluru-based food tech firm with an investment of over $400 million at a valuation of about $5.5 billion. Reports peg the size of the deal at about $450 million-$500 million. The deal will mark SoftBank’s maiden bet on India’s food tech sector, which is led by Swiggy and Zomato. SoftBank has funded a spate of Indian start-ups across segments including Oyo, Delhivery and Unacademy.

The investment by SoftBank is understood to be an extension of Swiggy’s $800 million financing round backed by new and existing investors in April that valued it at about $5 billion.

Sources said SoftBank’s move to seek CCI approval is a regular process and holds no significant implication. A spokesperson for SoftBank declined to comment.

“The activities of the Parties’ do not exhibit overlaps in any of the plausible relevant markets in India. Therefore, the proposed combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India,” the CCI filing said.

“However, solely with the aim to aid the assessment of the Hon’ble Commission, the Parties have provided a competitive assessment of 2 (two) indirectly overlapping vertical relationships between the Parties in the (i) digital payments services segment, and (iii) online advertising services segment,” the filing said. SoftBank also backs Paytm and advertising tech start-up InMobi.