As the Indian investments community is excited about the Zomato IPO, scheduled for tomorrow, the arch-rival Swiggy is busy preparing a bigger war chest to take on Zomato.
The Competitive Commission of India (CCI) has given approval to $450 investment in Swiggy coming from SoftBank Vision Fund 11. The anti-monopoly watchdog of India revealed on Twitter that the proposed acquisition of the stake in Bundl Technologies – the registered entity that owns and operates Swiggy – by SVF II Songbird is approved. It’s important to mention that SVF II Songbird is a SoftBank Group entity meant to manage all investments made under SoftBank Vision II.
The approval from CCI will allow Swiggy to strengthen its market presence and accelerate its growth rate to take on IPO bound Zomato.
SoftBank Invest in Swiggy: Big Picture
Food For Thought
India’s food delivery market is all set to usher in the new era after the Zomato IPO. It’s currently a two-horse race with nearly 9 out of every 10 orders are being fulfilled either by Zomato or Swiggy. As both the companies are ready with a bigger war chest, it would be interesting to see whats strategy Amazon Food would employ to eat into their market. Just for context, Amazon India has also jumped into the online food delivery business in India early last year. The company is constantly expanding its reach and now offerings its delivery service to 62 key locations in Bangalore – one of the largest cities in terms of revenue for online food delivery players.
The Zoamto-Swiggy duopoly is being challenged by Amazon Food in its key markets now. While Zoamto and Swiggy both are ready with the biggest war cheat they ever had, will it result in raining discounts for customers or CCI will have its reservations against deep discounting?
