So far, investments in retail-tech startups have tripled to $843 million by 2021.

Companies developing technology solutions have received three times as much funding this year as they did in all of 2020 as a result of the pandemic-induced surge in adoption of those solutions.

According to Tracxn, approximately 200 small and mid-sized firms offering digital ledger to payments solutions and AI-driven logistics have raised $843 million in the last nine months. This is in contrast to the $235 million raised in 2020.

Despite the devastating second wave of Covid-19 infections, this year’s funding matched the total amount raised in 2019. Despite the fact that brick-and-mortar stores account for 90% of the Indian retail market, more than three-quarters of the funding went to companies that provided technology solutions to online retailers.

In contrast to the previous two years, retail technology investment has increased this year from $6.13 billion to $7.49 billion, with only a small portion of that amount going to retail-related technology.

The pandemic’s emergence has accelerated the adoption of new technologies. Vamsi Udayagiri, founder of rural-tech firm Hesa Technologies, believes retailers must now step up their game in order to gain first-mover advantage and a larger share of the market among new users. Venture Catalyst, which is leading the round, recently invested $2 million in Hesa Technologies. In the last two years, a new group of customers and retailers have entered the retail ecosystem as a result of pandemic-induced online purchasing.

Swiggy Finalizing $500 Million Funding

According to three sources, Swiggy is nearing the completion of a $500-600 million investment round, which will most likely be led by Invesco. According to the sources, the remainder will be contributed by existing investors such as Falcon Edge, SoftBank Vision Fund, and Prosus.

As a result of the investment, Swiggy’s valuation is expected to rise from $5.5 billion to $10 billion. The other two most valuable privately held startups in India are Byju’s and Paytm, both of which will go public later this year.

However, Zomato shares closed Monday at Rs 143.55, up around 5%, giving the company a market capitalization of $15.16 billion (Rs 1.12 lakh crore). According to another source, Swiggy is “undervalued” because it is “a direct competitor to Zomato [that is] neck-and-neck on market share.”

According to sources, Invesco’s interest in Swiggy suggests that the company may consider going public in the future.

SoftBank CEO Masayoshi Son stated last month that Swiggy’s IPO could result in “good returns.” Swiggy received $450 million from SoftBank Vision Fund in July as part of a $1.25 billion round of funding. Swiggy, according to Son, processes 1.5 million orders per day and has approximately 20,000,000 active users per month. Swiggy’s revenue increased by 2.8 times between June 2020 and June 2021, and daily orders increased by 2.5 times.


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