Swiggy IPO: Swiggy targets $15 billion valuation in IPO

Indian food delivery giant backed by SoftBank Beater is pointing to a valuation of about $15 billion for its upcoming initial public offering to raise between $1 billion and $1.2 billion, three people familiar with the matter said.

The deal would make it one of India’s largest initial public offerings this year.

Swiggy competes with Zomato in the online food delivery sector to Indian restaurants and cafes, and both have made big bets on the new boom in so-called express commerce, where groceries and other goods are delivered within 10 minutes.

Swiggy received shareholder approval in April for a IPO The company’s confidential application is expected to be approved by India’s markets regulator in about a month. After approval, it will file a public prospectus, according to the people, who asked not to be identified because the matter is private.

The company is targeting a valuation of around $15 billion, though the final figure could change, they said.

Swiggy said in response to a Reuters query that it could not comment on “any market speculation”.

Its latest funding round, led by Invesco in 2022, valued it at $10.7 billion. One of the sources said Swiggy intended to use the IPO proceeds to expand its fast-paced commerce. Instant Store businesses and open more stores to better compete with Zomato.

Zomato shares have more than doubled since its listing in 2021 and it has a market valuation of around $28 billion.

Goldman Sachs said in April that express deliveries accounted for $5 billion, or 45%, of India’s $11 billion online grocery market and forecast the segment will reach a 70% share of that market by 2030.

Reuters reported in June that Swiggy was increasingly focusing on its Instamart business.

According to sources, Swiggy’s food delivery business is profitable, but Instamart’s grocery delivery business remains loss-making. The company has around 550 grocery stores across 35 cities in India.