Meituan is an e-commerce startup offering a food and grocery delivery platform that sold its $200 million stake in Swiggy. The company reportedly sold the stake in a secondary deal to a US-based investor. Entrackr posted. This Chinese food and multicategory product offering startup invested in Swiggy for the first time in 2018 and then increased its shares through participation in another round in 2020. The precise data is yet to be announced but the source close to this deal mentioned that the company sold its stake based on an estimated valuation of 10 billion USD.
The source close to the development mentioned that the company sold its holding last week through a secondary deal worth 200 to 220 million USD. The startup data intelligence platform, thekredible mentioned that Meituan currently accounts for 3.88 percent of the swiggy’s overall stake. Existing investors including Elevation Capital and Norwest, have also sold their stakes in the firm before the company’s public listing. Swiggy’s major stakeholders like Accel and Prosus are expected to reduce their holdings through secondary deals before the firm goes public. Media reported.
Swiggy offers an online food delivery platform offering parcel delivery, groceries, and food ordering services. The food tech major provides services in several locations across India and it plans to expand its network globally. This startup allows users to order groceries like fruits vegetables, and seafood online. The online platform also provides medicine and document delivery services. The company is expected to make its public debut in the next three weeks. The startup plans to raise around 450 million USD through a mix of fresh issues and offer for sale. The food-tech startup offers a platform to provide food and grocery delivery services.
Swiggy posted a 36 percent increase in its revenue to Rs 11,247 crore in FY24. However, the net loss decreased by 44 percent to Rs 2,350 crore in the same duration. The data intelligence platform, tracxn posted that the company has raised around $3.62 billion across multiple funding rounds since its inception. This includes $46.4 million secured from P R Venketrama Raja and other investors during its series K funding round. The development came when the app-based delivery platforms saw increased investor interest. Swiggy faces competition from other food delivery platforms such as Zomato, Blinkit, and Zepto.
Conclusion :
The Chinese food and grocery delivery platform, Meituan sold its $200 million worth stake in Swiggy to a US-based investor through a secondary deal. The food delivery platform bought a stake in the firm in 2018 and increased in 2020. The startup data intelligence platform, thekredible posted that the firm holds a 3.88 percent stake in Swiggy.
The development came after Elevation Capital and Norwest sold their stakes in the food tech major. Swiggy has raised around $3.62 billion across all its funding rounds since its inception. The company competes with other food delivery platforms including Blinkit, Uber Eats, and more.
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