Food delivery company Swiggy is in talks to raise funds from the US-based private equity fund Carlyle Group.
If Carlyle does invest, it would mark only its second Indian technology startup bet, after backing e-commerce logistics firm Delhivery—first in 2017 and later in March this year.
As recently as December, Swiggy raised $1 billion in a round led by existing investor Naspers Ltd, the biggest ever funding round in the country’s booming food-tech sector.
“Swiggy’s meteoric rise in the last two years have seen heavy interest from late-stage investors including private equity funds. While it is still growing quickly and burning cash, investors see it as a long-term bet,” said an investor.
Swiggy will use the funds to grow its delivery fleet, expand beyond food to other delivery services and ramp up its hyperlocal offerings.
Food-tech funding has also seen a surge globally, with UK-based delivery startup Deliveroo raising $575 million from Amazon Inc., while US-based Doordash raised $600 million, valued at $12.6 billion, from investors including SoftBank, DST Global and Sequoia Capital.
Founded in 2014, Swiggy became a unicorn—a startup valued at more than $1 billion—last year. The Bengaluru-based firm has so far raised $1.5 billion from several investors, including DST Global, South Africa’s Naspers, New York-based hedge fund Coatue Management and venture capital firms Accel and Norwest Venture Partners.