1 min read.Updated: 23 Jul 2021, 09:46 AM ISTLivemint
Just ahead of Zomato's listing, rival food delivery startup Swiggy said it has closed a $1.25 billion funding round led by SoftBank Vision Fund 2 and Prosus
Ahead of its much-anticipated stock market debut on Friday, Zomato founder and CEO Deepinder Goyal shared a letter that he has written to shareholders in a blog post as 'on the day of Zomato's listing, he wanted to share something with the shareholders, and India’s startup ecosystem.'
In his letter, Goyal mentioned rival Swiggy, talking about how he believes Zomato and Swiggy are two of the best food delivery apps in the world. ''India is a tough market to operate in, but if you are building to succeed in India, you are already exceptional. I say that because I believe Zomato and Swiggy are two of the best food delivery apps in the world today. We have a long way to go before we can call ourselves world class by our customers’ standards, but we are determined to get there,'' he said.
Swiggy recently said that it has raised $1.25 billion from investors, including SoftBank and Prosus, nearly matching the funds raised by rival Zomato in an initial public offering (IPO), as the two companies battle to dominate India’s food delivery market.
The company expects the fundraising to help execute its multi-year strategy of growing beyond the core food delivery business and build other revenue models. The fundraising would value Swiggy at $5.5 billion, an increase of more than 50% from the $3.6 billion it was valued in April last year.
Goyal in his letter also talked about other Indian start-ups Flipkart, Amazon, Ola, Uber, Paytm, who he believes have also over the years collectively laid the railroads that are enabling companies like theirs to build the India of the future.
''Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem. Jio’s prolific growth has set all of us up for unprecedented scale. Flipkart, Amazon, Ola, Uber, Paytm – have also over the years, collectively laid the railroads that are enabling companies like ours to build the India of the future. We stand proudly and humbly on the shoulders of giants, and we thank everyone for giving us, and so many other startups, the opportunity to look ahead into the future,'' he added.