Saudi-backed Vision Fund plans to invest in Indian food delivery startup

Saudi Arabia-backed SoftBank Vision Fund is planning to invest in one of the two largest food delivery companies in India, financial daily Mint reported, citing people familiar with the matter.

Talks with Zomato are at an "advanced" stage in comparison to Swiggy, the report said, adding the two companies are looking to raise $500 million in the new round of funding.

While SoftBank has been evaluating Swiggy for nearly a year, both parties have failed to reach an agreement during the last two funding rounds, the sources added. 

India's online food delivery market is expected to reach $4 billion in 2020 from $700 million last year, according to RedSeer Consulting.

The Vision Fund is backed by Saudi Arabia's Public Investment Fund (PIF), Japan's SoftBank Group and UAE's Mubadala Investment Co., and is supported by tech giants Apple, Foxconnn, Qualcomm and Sharp.