Swiggy is planning a $1.25 billion IPO in November, one of the most awaited in 2024. While some investors like Prosus Ventures, Norwest Venture Partners, and Goldman Sachs may sell shares, SoftBank is expected to hold its position. The IPO could value Swiggy at around $15 billion, with the final valuation set during upcoming roadshows.
The new funds will help Swiggy expand its Instamart service, which delivers groceries and essentials, by doubling its network of “dark stores” over the next four years. These stores will be larger, allowing Swiggy to keep more products in stock.
Swiggy faces strong competition from Zomato, which has integrated Blinkit and achieved profitability in the quick commerce sector in early 2024. Instamart, launched in 2020, is newer and has undergone leadership changes, but Swiggy is now focusing on improving its quick commerce operations. The company appointed Amitesh Jha, formerly of Flipkart, as Instamart’s new head to strengthen this part of the business.
In FY24, Swiggy reduced its losses by 43%, with revenue rising by 36%. Its gross order value (GOV) for the year hit ₹35,000 crore, with 14.3 million monthly users. Although Swiggy is closing the gap with Zomato, its quick-commerce business still lags behind Blinkit and Zepto, which dominate the market.
Quick commerce has grown fast in India, with a gross merchandise value (GMV) of $2.8 billion in 2023. With competition heating up, Instamart will have to up its game to keep pace.
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