IPO News Updates : SoftBank-backed Indian food delivery giant Swiggy is planning a stock market debut with a targeted valuation of around $15 billion, aiming to raise between $1-1.2 billion, according to three sources familiar with the matter.
If successful, this would rank as one of the largest Indian IPOs of the year. Swiggy, a key player in India’s online food delivery sector, competes directly with Zomato. Both companies are heavily investing in the fast-growing “quick commerce” sector, where groceries and other products are delivered in just 10 minutes.
In April, Swiggy received shareholder approval to raise up to $1.25 billion through an IPO. The company’s confidential filing is expected to receive clearance from the Indian market regulator within the next month, after which it will file a public prospectus, according to the sources who requested anonymity.
Swiggy is eyeing a valuation of around $15 billion, though this figure may change. The company’s last funding round, led by Invesco in 2022, valued it at $10.7 billion.
One of the sources mentioned that Swiggy plans to use the IPO proceeds to expand its quick commerce Instamart business and build more warehouses to better compete with Zomato.
Zomato, which went public in 2021, has seen its shares more than double since listing, giving it a market valuation of around $28 billion.
According to Goldman Sachs, quick deliveries made up $5 billion, or 45%, of India’s $11 billion online grocery market as of April, with expectations that this segment will grow to 70% by 2030.
Swiggy has increasingly focused on its Instamart business, as reported by Reuters in June. While Swiggy’s food delivery service is profitable, the Instamart grocery delivery business is still operating at a loss, sources say.
The company currently operates around 550 grocery warehouses across 35 Indian cities.
IPO News Updates : FAQs
What is the target valuation for Swiggy’s upcoming IPO?
Swiggy is targeting a valuation of around $15 billion for its upcoming IPO.
How much is Swiggy planning to raise through its IPO?
Swiggy aims to raise between $1-1.2 billion through its stock market offering.
When is Swiggy expected to file its public prospectus for the IPO?
Swiggy is expected to file its public prospectus after receiving clearance from the Indian market regulator, which is anticipated within the next month.
How does Swiggy’s valuation compare to its last funding round?
Swiggy’s last funding round in 2022, led by Invesco, valued the company at $10.7 billion. The IPO is targeting a higher valuation of $15 billion.
What will Swiggy use the IPO proceeds for?
Swiggy plans to use the proceeds to expand its quick commerce Instamart business and open more warehouses to better compete with Zomato.
How does Swiggy’s valuation compare to Zomato’s?
Zomato, which went public in 2021, currently has a market valuation of around $28 billion, nearly double Swiggy’s targeted valuation.
What is “quick commerce” and why is it important to Swiggy?
Quick commerce refers to the rapid delivery of groceries and other products, often within 10 minutes. It’s a growing segment that Swiggy is heavily investing in, particularly through its Instamart service.
Is Swiggy’s food delivery business profitable?
Yes, Swiggy’s food delivery business is profitable. However, its grocery delivery service, Instamart, is still loss-making.
How many grocery warehouses does Swiggy operate?
Swiggy operates around 550 grocery warehouses across 35 Indian cities to support its Instamart business.
What is the projected growth of the quick commerce market in India?
Goldman Sachs projects that quick deliveries will account for 70% of India’s online grocery market by 2030, up from 45% currently