Briefing: Tencent joins $1 billion funding for India’s Swiggy

Tencent Joins Naspers in a $1 Billion Funding for India’s Swiggy – Bloomberg

What happened: Chinese tech giant Tencent joined its biggest shareholder Naspers in a $1 billion investment in Indian food delivery service Swiggy. While Tencent did not reveal the size of its own investment, nearly 70% came from Naspers. The two investors were joined by  Meituan, DST Global, and Hillhouse Capital, among others. The financing found values Swiggy at $3.3 billion, up from $1 billion at the end of June.

Why it’s important: Tencent isn’t a newcomer to India’s tech scene. The company already controls a stake in e-commerce firm Flipkart and ride-hailing company Ola. In April the Chinese giant was rumored to have invested $100 million in Mumbai-based online fantasy sports platform Dream 11. Swiggy is one of a number of  Indian startups capitalizing on the country’s rapid smartphone adoption rates. Both Tencent and Naspers have had a bad year after the Chinese company lost more than $200 billion in market value, resulting in a 19% slump in Naspers’ shares.