The CapTable Wrap: Tiger Global’s bigger playbook, SoftBank takes a side on Swiggy vs Zomato, fintech’s eternal funding boom, & more

Two marquee investors are hogging India’s dealmaking landscape again, and in sectors such as food delivery and fintech that are undergoing massive transformations.
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Swiggy made a twin appearance last week — first, for its big bet on hyperlocal grocery deliveries, and second, for leveraging this business to convince SoftBank to finally take the plunge into Indian food-tech. Also big on The CapTable’s coverage last week was Tiger Global’s return to dominate dealmaking in India and why investors are on a bull run behind fintech companies. Don’t miss catching up on what’s happening with UPI and Google Pay.

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With about a dozen investments over the previous two months, Tiger Global Management is back to dominating the pace of dealmaking in India. Its playbook isn’t much different from earlier. Tiger continues to invest in competing startups—it backs the race, not the horse—but what’s changed are the players and the size of the bets.

Tiger Global: Heads I Win, Tails You Lose

After helping define India’s food-delivery sector, Swiggy’s working to leverage the learnings from the business to shape another category—instant grocery deliveries. Investors are betting that if Swiggy’s InstaMart can deliver daily essentials in under 30 minutes, it could become bigger than the company’s core food delivery business.

Swiggy seeks a breakout category in high-speed grocery delivery

Fintech startups aren’t done raising money. Shortly after Cred’s fundraise, and not too long after their own, Razorpay and BharatPe are in talks for deals that would boost their valuations again. Investors are flocking to fintechs mostly for their lending potential, even if these companies are yet to prove their chops in underwriting, collections, and containing cost of capital.

Fintech’s eternal funding boom: After Cred’s fundraise, Razorpay, BharatPe in fresh talks

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Even as UPI is becoming the default mode to pay merchants in India, Google Pay, once the country’s leading UPI app, is losing market share like sand through fingers. PhonePe now occupies the top position, but that could prove tricky considering how third-party UPI apps are required to limit their market share to 30% within two years.

Google Pay on track to meet NPCI's 30% market share limit

If Tiger’s on the prowl, so is SoftBank. The Japanese investment firm seems set to finally plug a conspicuous gap in its India portfolio—food delivery. After four years of engaging with Swiggy and Zomato, SoftBank has issued a term sheet to invest $400-500 million in the former, but not only because of its thriving food delivery business.

SoftBank to invest $400-500 mn in Swiggy; swipes left on Zomato

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