Masayoshi Son, chief executive officer of Softbank, is bullish on its bet on Swiggy in India and expects to see good returns from the company if it plans an IPO like rival Zomato.
He also had positive commentary for Zomato, stating that the share price has done well since it went public. Zomato had seen a big pop at the time of listing and had also crossed a market capitalisation of Rs 1 lakh crore.
"Swiggy and Zomato are two competitors in food delivery in India. Each has 50 percent market share," Son said while speaking about the food delivery business in India during the earnings call for the June quarter on Tuesday.
Last month, Swiggy had announced the closure of $1.25 billion (approximately Rs 9,345 crore) funding led by SoftBank Vision Fund 2 and Prosus.
Son shared that Swiggy now has over 20 million monthly active users, over 1.25 lakh restaurant partners and fulfills over 1.5 million orders per day. The company has also seen a 2.5x growth in terms of orders per day year on year and 2.8x growth in revenues year on year.
Reuters also quoted the Softbank Vision Fund CFO speaking about "further upside (for Vision Fund I) from listings by Indian payments firm Paytm and insurance aggregator Policybazaar as well as Southeast Asian ridehailer Grab."
Softbank Vision Fund reported a $2 billion profit in the quarter, despite the Chinese crackdown on tech giants, some of which such as Alibaba that Softbank has significant exposure to.
"New regulations are being implemented in China. We will wait and see till things get settled, the new rules will be clearer in 1-2 years," Son said, "We can resume investments in China once things are clear."
Son said Chinese technology giant Alibaba has already paid a penalty under anti-trust law and is complying with new rules.
First Published: Aug 10, 2021 4:24 PM IST