Swiggy Eyes $15 Billion Valuation with $1.2 Billion IPO: Here’s What You Need to Know

Swiggy, the Indian food delivery giant backed by SoftBank, is planning to raise between $1 billion and $1.2 billion through an upcoming Initial Public Offering (IPO). The company is aiming for a valuation of around $15 billion, according to three sources familiar with the matter.

This IPO could be one of the largest in India this year. Swiggy, which competes with Zomato in delivering food from restaurants and cafes, has also invested heavily in the “quick commerce” sector, where groceries and other products are delivered within 10 minutes.

In April, Swiggy’s shareholders approved the plan to raise up to $1.25 billion through the IPO. The company is expected to receive approval for its confidential filing from India’s market regulator within a month, after which it will file a public prospectus, according to the sources who requested anonymity.

Swiggy is targeting a valuation of around $15 billion, though this number could change. In response to a query from Reuters, Swiggy stated it could not comment on “any market speculation.”

The company’s last funding round, led by Invesco in 2022, valued Swiggy at $10.7 billion.

One source mentioned that Swiggy plans to use the funds from the IPO to expand its quick commerce business, Instamart, and to open more warehouses to better compete with Zomato.

Since its 2021 listing, Zomato’s shares have more than doubled, giving it a market valuation of around $28 billion.

Goldman Sachs reported in April that quick deliveries made up $5 billion, or 45%, of India’s $11 billion online grocery market, and they expect this segment to grow to 70% of the market by 2030.

In June, Reuters reported that Swiggy is increasingly focusing on its Instamart business.

While Swiggy’s food delivery operations are profitable, its grocery delivery service, Instamart, is still operating at a loss, according to sources. The company currently has about 550 grocery warehouses in 35 Indian cities.