Amitabh Bachchan Enters the Food Delivery Game with Swiggy Stake -

Bollywood icon Amitabh Bachchan, through his family office, has acquired a stake in Swiggy by purchasing shares from the food-delivery and quick-commerce firm’s employees and early investors, sources familiar with the matter have revealed.

Raamdeo Agrawal’s Investment Moves

Raamdeo Agrawal, the chairman of Motilal Oswal Financial Services, has also secured a stake in Swiggy during a period of heightened fundraising activity in the quick-commerce sector.

Notably, Agrawal also invested in Zepto, another quick-commerce company, through its recent $665 million funding round, according to insiders.

Sizable Investments

While the exact amounts invested by both Bachchan and Agrawal remain undisclosed, insiders suggest that the investments are substantial for individual investors.

The secondary share sales that facilitated these acquisitions were reportedly based on a valuation of around $10-11 billion for Swiggy, according to sources close to the transaction. Agrawal’s investments in both Swiggy, which operates the Instamart quick-commerce platform, and Zepto highlight the rapid expansion and promising future of the quick-commerce sector.

Industry Response and Market Potential

Neither Agrawal nor Bachchan’s family office provided comments on the transactions. Swiggy and Zepto also declined to respond to inquiries from the media.

Investors are increasingly focused on the quick-commerce sector, particularly after the strong performance of Swiggy’s competitor Zomato and its Blinkit platform. One investor noted that Swiggy is moving closer to its initial public offering (IPO), while Zepto is also planning a public listing in the coming years.

Future Prospects for Quick Commerce

A research note from Motilal Oswal, dated August 2, described Blinkit as offering a “generational opportunity” to disrupt industries such as retail, grocery, and e-commerce.

Swiggy is preparing for a $1.25 billion IPO, while Mumbai-based Zepto is nearing the completion of a $300-350 million funding round, which would place its valuation at $5 billion post-money, bringing its total fundraising to $1 billion.

Swiggy’s Valuation and Market Dynamics

Swiggy investor 360 One WAM recently valued the Bengaluru-based company at $11.5 billion, according to an internal note reported on August 23. The note highlighted that Swiggy generated ₹7,474 crores in revenue in the first half of the fiscal year 2024.

While secondary transactions usually occur at a discount compared to the most recent primary valuation, Swiggy’s last valuation in 2022 was $10.7 billion. However, current valuations by various investors range from $11.5 billion to nearly $15 billion, driven partly by Zomato’s rising stock price. Zomato, based in Gurugram, currently holds a market capitalization of approximately $28 billion, with $15 billion attributed to Blinkit.

Competitive Landscape in Quick Commerce

As Blinkit continues its aggressive expansion, competitors are also making strategic moves. BigBasket has announced a complete shift to quick commerce, and Flipkart has begun rolling out its Minutes service in New Delhi and Mumbai, following its launch in Bengaluru earlier this month.