Global hedge fund Coatue Likely To Buy stake in Swiggy
Global hedge fund Coatue Likely To Buy stake in Swiggy

Global technology hedge fund Coatue Management is mulling over to invest $50-100 million in online food delivery platform Swiggy.

The move comes less than two months after South African media giant Naspers and Chinese e-commerce firm Meituan-Dianping invested $100 million in the Bengaluru-based startup, underlining how the pace of investment in India’s digital market is picking up again.

Coatue and Meituan-Dianping, besides two other investors who could not be identified, are in talks to invest in Swiggy, which was valued at $700 million last month. Meituan-Dianping invested $40 million in the $100-million round.

"Coatue has been talking to Swiggy for the last few months before the previous round of funding was closed," said one of the people, adding that a deal was not final yet. It is not clear if the investment will be an extension of the previous round or a new one, as Swiggy looks to beef up its war chest as it competes with Ant Financial-backed Zomato besides new entrants like Ola and UberEATS.

A technology-focused hedge fund, New York-based Coatue is led by former Tiger Management executive Philippe Laffont and has over $15 billion in assets under management. Its interest in the Indian Internet ecosystem follows the penetration of affordable data in India a move that Laffont believes will help deepen customer acquisition through deeper penetration, as per a report in Forbes last month.

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