Online food delivery major Swiggy is in advanced discussions to close a new round of funding at a targeted valuation of $10-11 billion, according to two sources directly familiar with the negotiations.

The company is expected to raise $500-600 million, the sources said, although the final size could not be immediately ascertained and the numbers could change.

“The company is expected to finalize the investors in the next few weeks, but there will be heavy participation by some of the existing investors,” said one of the sources.

At the expected valuation, Swiggy’s third major funding round this year would elevate it into the rarified Decacorn club, taking it closer to Zomato’s market capitalization. Not too long ago, it used to be Zomato doing the catch-up.

Swiggy’s currently valued at $5.5 billion following its $450-million fundraise from SoftBank Vision Fund in July. Zomato’s market capitalization at close on Friday was Rs 107,204 crore, or $14.5 billion, up from $5.4 billion in February. Zomato listed on the stock market in July.

“Swiggy will be close to Zomato’s valuation. But the only point is that in a private company you cannot raise money at such a high price,” said the other source mentioned above. “Tomorrow if there is a fall in the markets or Zomato’s share price then the pressure will be on Swiggy for a down round.”