Naspers isn’t the only food delivery fan – The Wall Street Journal
DUBLIN – Naspers recently said that it plans to increase its stake in Indian online food delivery group Swiggy. The company believes that food delivery will be a key growth area and has been backing up that belief with investments in Swiggy, German food delivery group Deliver Hero and Brazil's iFood. It seems that other investors are now also waking up to the opportunity offered by the sector – The Wall Street Journal reports that venture capital firms have bet $3.5 billion on the sector so far this year. Naturally, when there's this much buzz about a sector, it raises concerns about a bubble. After all, other promising online sectors such as meal-kits attracted a lot of financing, but then failed to deliver profits. Hopefully, however, Naspers is making the smart bet. – Felicity Duncan
Restaurant and grocery delivery companies are the latest feeding frenzy for investors, who are betting that appetites for food brought to homes and workplaces will keep growing.
Venture-capital firms have invested $3.5 billion in food and grocery delivery services so far this year, more than triple the amount they invested in all of 2017, according to PitchBook.
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