Swiggy looks to expand basket with Dunzo buy
If the deal goes through, it will help Swiggy expand its delivery basket to offer non-food services and help it compete with rival Zomato, which recently listed on the bourses at a valuation of around $13 billion.
Food ordering platform Swiggy is in initial talks to acquire hyperlocal delivery services startup Dunzo even as it is in separate discussions with investors to raise a fairly large sum that will double its valuation from about $5.5 billion to $10-12 billion, two people familiar with the deal said.
If the deal goes through, it will help Swiggy expand its delivery basket to offer non-food services and help it compete with rival Zomato, which recently listed on the bourses at a valuation of around $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.
