According to media reports, Swiggy, one of India’s leading food ordering platforms, is in preliminary talks to acquire Dunzo, a hyperlocal delivery services startup, at the same time as it’s in private talks with investors to finance a substantial amount that will double its valuation from $5.5 billion to $10-12 billion.
Swiggy will expand its service umbrella to include non-food services if the deal goes forward, allowing it to perform against competitor Zomato, which was reportedly estimated at over $13 billion on the stock exchanges.
“Swiggy is in exploratory conversations, but there is no official agreement inked as yet,” a person associated with the deal said. The company is financing a colossal round, according to the second person, who also declined to be identified, that is projected to lift its valuation to $10-12 billion.
In a polished response, Dunzo founder Kabeer Biswas indicated that his company does not reply to speculations at this moment and that his emphasis is on the company’s rapid expansion.