The second largest publicly traded company in Japan, Softbank, has received approval from the Competition Commission of India (CCI) to invest in Bengaluru based Bundl Technologies, which operates local food delivery giant Swiggy.
The $450 million infusion into Swiggy is reported to be a part of the larger $800 million round being raised by the startup, valuing it at $5.5 billion.
CCI’s approval comes at a time when the battle between foodtech unicorns is heating up, with rival Zomato eyeing a public outing tomorrow. Backed by Jack Ma’s Ant Group Co, Zomato looks to raise Rs 9,750 crore via the IPO.
SoftBank's bet on Swiggy has been in the works for several months now. The company sought CCI’s approval for Swiggy’s investment in June.
“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.” a CCI filing read.
The investment will be allocated from SoftBank’s Vision Fund II. The financial details of the transaction have not been disclosed as part of the filing with the CCI.
“SVF II belongs to the SoftBank Group which is present in India through controlled entities and investments in various sectors, including financial technology, health technology, logistics, and education technology,” the CCI filing said.
SoftBank, owned by billionaire Masayoshi Son, has taken a keen eye towards Indian companies this year. Earlier this week, Softbank led a $3.6 billion round into online marketplace Flipkart, valued at $37.6 billion. It has also invested $90 million in Bengaluru based digital adoption platform Whatfix among other high-profile bets.
The recent $800 million round in Swiggy also saw participation from Falcon Edge Capital, Goldman Sachs, Think Capital, Amansa Capital and Carmignac.