Swiggy is planning to make its stock market debut in 2024 and has started talking with bankers to determine its market valuations, reported Reuters on Friday. The Softbank-backed food delivery firm had started the IPO plans last year but postponed it amid funding challenges and concerns about high valuations, the report said. Swiggy's last funding in 2022 valued it at $10.7 billion.
Although the start-up postponed its IPO plans amidst funding challenges and concerns about high valuations, the improved global and Indian markets have prompted a revival, the report said citing three sources with direct knowledge of the matter. Adding that in early September, Swiggy invited eight investment banks, including Morgan Stanley, JP Morgan, and Bank of America, to present proposals for assisting with the IPO.
The start-up is using the $10.7 billion valuation from its last funding round as a starting point for IPO preparations, as per the report. However, specific details about the stake sale or final valuation are yet to be determined.
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In May, Invesco, a minor stakeholder in Swiggy, valued the company at approximately $5.5 billion, as per the report. Originally, Swiggy had planned to raise $800 million to $1 billion through its IPO, according to banking sources involved in early 2022, the report said.
The sources told the news agency that Swiggy is targeting a listing window between July and September 2024.
Swiggy's listed competitor Zomato, has seen a 54.8 per cent surge in its shares this year, indicating renewed investor confidence in India's financial markets, the news agency noted.
Swiggy announced in May that its core food delivery business had achieved profitability, nine years after its inception. However, its newer service, Instamart, which deals with grocery delivery, continues to report losses.