Swiggy Eyes $15 Billion Valuation For IPO, Aiming To Raise $1.2 Billion: Report

Swiggy IPO: In April, Swiggy's shareholders approved an IPO that could generate up to $1.25 billion in capital

Swiggy's latest funding round in 2022, led by Invesco, valued the company at $10.7 billion.

Source : PTI

Swiggy IPO: Indian food delivery giant Swiggy, backed by SoftBank, is gearing up for a major initial public offering (IPO), targeting a valuation of approximately $15 billion, sources privy to the matter told news agency Reuters. The company aims to raise between $1 billion and $1.2 billion in the offering, positioning it among the largest IPOs in India this year.

Swiggy, a key player in India's online food delivery space, is engaged in fierce competition with rival Zomato. Both companies have expanded their operations beyond restaurant deliveries, investing heavily in the burgeoning "quick commerce" sector, which promises grocery and product deliveries within 10 minutes.

In April, Swiggy's shareholders approved an IPO that could generate up to $1.25 billion in capital. The company's confidential filing is expected to gain approval from India's market regulator in the coming weeks, paving the way for the release of a public prospectus, said the sources, who requested anonymity due to the sensitive nature of the discussions. Swiggy declined to comment on the IPO, citing a policy against market speculation.

Swiggy's latest funding round in 2022, led by Invesco, valued the company at $10.7 billion. The potential increase in valuation highlights the company’s ambitions, particularly in its Instamart quick commerce division. Swiggy plans to use proceeds from the IPO to expand this business, adding more warehouses and enhancing its ability to compete with Zomato.

While Swiggy’s food delivery operations are profitable, the Instamart business remains in the red, insiders revealed. The company currently operates 550 grocery warehouses across 35 cities in India.

Zomato, Swiggy's main competitor, has seen its shares more than double since going public in 2021, with a market valuation now reaching $28 billion. Quick commerce has been a significant growth area for both companies. According to Goldman Sachs, rapid deliveries made up 45 per cent, or $5 billion, of India's $11 billion online grocery market in April. That share is projected to reach 70 per cent by 2030.

With its upcoming IPO, Swiggy is set to further intensify its rivalry with Zomato as both companies race to dominate India's fast-evolving grocery delivery sector.