Online Food Delivery Platform Swiggy Prepares For $800-Mn IPO Early Next Year

Recently, Swiggy turned decacorn after raising $700 million in a funding round led by Invesco

Swiggy plans to position itself as a logistics firm, and not just a food delivery company. Image: Getty

New Delhi: Online food delivery platform Swiggy is eyeing an initial public offering (IPO) of $800 million early next year, Nikkei Asia said in a report.

The Indian food aggregator, however, didn’t respond to request for comments, according to Reuters.

The IPO preparation comes in hopes to raise the funds to expand market share amid tough rivalry with Zomato. The company plans to position itself as a logistics firm, and not just a food delivery company, the report said.

Rival company Zomato had launched its IPO on July 14, 2021 and closed July 16, 2021. It received a stellar response from the investors as it was subscribed more than 38.25 times. The fixed price band of the Zomato IPO was at Rs72 to Rs76 for as many as 71.92 crore shares.

Recently, Swiggy turned decacorn after raising $700 million in a funding round led by Invesco.

The funding round valued the food delivery start-up at $10.7 billion, more than Zomato, following $1.25 billion round in July 2021 at a valuation of $5.5 billion, a 50 per cent jump from the valuation of $3.6 billion in April last year.

Decacorns are privately-held companies that have a valuation of $10 billion or more.

The SoftBank-backed start-up clocked a 27 per cent dip in its FY21 operating revenue amid Covid-induced lockdowns in the country. The consolidated operating revenue of the company dropped to Rs 2,547 crore for FY21 as compared to Rs 3,468 crore in FY20, according to the company’s filings with the ministry of corporate affairs. Its consolidated total income was down 28 per cent to Rs 2,676 crore.