SoftBank has filed a submission with the Competition Commission of India (CCI) for investment in popular online food aggregator Swiggy. In this, it has proposed an investment of more than $ 500 million at a valuation of $ 5.5 billion.
Softbank reported in the report that the proposed combination is being offered under Section 5 (a) of the Competition Act, 2002 to the Competition Commission of India to achieve a certain shareholding percentage. The deal is expected to be worth around $450 million to $500 million. The deal will mark SoftBank’s first bet on India’s food tech sector, which is led by Swiggy and Zomato. SoftBank has previously provided financial assistance to Indian start-ups in several sectors including OYO, Delhivery and Unacademy.
The investment by SoftBank is believed to be an extension of Swiggy’s $800 million. In April, new and existing investors invested in the company, which was valued at about $5 billion. Sources said that SoftBank’s move to seek CCI’s approval is a routine process and will not have any significant impact. However, a SoftBank spokesperson declined to comment.
The CCI filing says, “The activities of the parties do not demonstrate overlap in any plausible relevant markets in India. Hence, the proposed combination will not change the competitive landscape. However, only for the purpose of assisting in the evaluation of the Commission, the Parties have provided a competitive assessment of the Digital Payment Services segment and indirectly between the Parties.”
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