SoftBank seeks CCI approval for Swiggy investment

A spokesperson for SoftBank declined to remark.

SoftBank has filed a submission with the Competitors Fee of India (CCI) searching for approval for a proposed funding in meals tech agency Swiggy.

“SVF II (SoftBank Imaginative and prescient Fund II) proposes to accumulate a sure shareholding share in Bundl. The proposed mixture is notifiable to the Competitors Fee of India beneath part 5(a) of the Competitors Act, 2002,” the CCI submitting learn. Bundl Applied sciences owns Swiggy.

SoftBank is trying to again the Bengaluru-based meals tech agency with an funding of over $400 million at a valuation of about $5.5 billion. Studies peg the dimensions of the deal at about $450 million-$500 million. The deal will mark SoftBank’s maiden guess on India’s meals tech sector, which is led by Swiggy and Zomato. SoftBank has funded a spate of Indian start-ups throughout segments together with Oyo, Delhivery and Unacademy.

The funding by SoftBank is known to be an extension of Swiggy’s $800 million financing spherical backed by new and current buyers in April that valued it at about $5 billion.

Sources stated SoftBank’s transfer to hunt CCI approval is a daily course of and holds no important implication. A spokesperson for SoftBank declined to remark.

“The actions of the Events’ don’t exhibit overlaps in any of the believable related markets in India. Due to this fact, the proposed mixture won’t result in any change within the aggressive panorama or trigger any considerable opposed impact on competitors in India,” the CCI submitting stated.

“Nonetheless, solely with the purpose to help the evaluation of the Hon’ble Fee, the Events have offered a aggressive evaluation of two (two) not directly overlapping vertical relationships between the Events within the (i) digital funds providers phase, and (iii) internet advertising providers phase,” the submitting stated. SoftBank additionally backs Paytm and promoting tech start-up InMobi.