The Competition Commission of India (CCI) today approved Japan-based Softbank's Vision Fund II to invest in Bengaluru-based foodtech major Swiggy. CCI today wrote on Twitter that it has approved 'Proposed acquisition of a certain stake in Bundl Technologies (Swiggy) by Softbank Vision Fund II'.
The announcement comes amid NRAI (National Restaurant Association of India) complaining about foodtech Zomato and Swiggy's heavy discounts and the pricing given to customers. NRAI had written to CCI saying that this practice will have an appreciable adverse effect on competition.
Earlier in April 2021, It was reported that Softbank is in talks to invest about $450 million in the online foodtech startup Swiggy at a pre-money valuation of $5 billion.
Last month, Softbank had sought approval from the Competition Commission of India (CCI) to invest in Swiggy. The development comes at a time when its top rival Zomato is ready to launch its IPO this week.
According to the reports, The $450 million proposed investment will arrive in a new funding round. In April 2021, Swiggy had raised $800 million in a Series J funding round from Falcon Edge, Amansa, Think Investments, Carmignac, and Goldman Sachs at a valuation of $5 billion.
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