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Swiggy: The Latest Indian Startup to Join the Unicorn Club

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Swiggy just received $210 million in funding

India is increasingly becoming a massive battleground for US and Chinese Internet companies. Amazon (AMZN), Tencent, Alibaba, and Walmart (WMT) are among the companies that have already made huge investments in the country.

India’s coveted and rapidly growing food delivery market has been heating up. Swiggy, one of the leaders in this space, is facing competition from Zomato, Uber Eats, and Ola-owned Foodpanda.

Swiggy just landed a $210.0 million investment, which was led by South African company Naspers. With this investment, Swiggy’s valuation reached ~$1.3 billion, which qualifies it as a unicorn—a startup with a valuation in excess of $1.0 billion.

Naspers also made a big bet on Tencent (TCEHY). Other backers included Meituan Dianping, which already had a stake in it, as well as new investors DST Global and Coatue Management. Meituan Dianping and Naspers already invested $100.0 million in Swiggy in February.

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The Indian food delivery market is heating up

Zomato, one of Swiggy’s competitors, raised ~$440.0 million from investors such as Alibaba’s (BABA) affiliate company Ant Financial. The Indian food delivery market is still a small one and is in its nascent stages of development. 

Swiggy, which launched in 2014, says it covers more than 35,000 restaurants, operates in 15 Indian cities, and could use the new funds to expand its reach. With this latest investment, Swiggy is one of the fastest Indian startups to join the unicorn club.

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