Swiggy, the Indian food delivery giant backed by SoftBank, plans to launch an initial public offering (IPO) aiming for a valuation of about $15 billion. The company wants to raise between $1 billion and $1.2 billion through this offering, which could be one of the biggest IPOs in India this year.
Swiggy, which competes with Zomato in delivering food from restaurants and cafes, has also invested heavily in the quick commerce trend. This trend focuses on delivering groceries and other products within 10 minutes.
In April, Swiggy’s shareholders approved the IPO, which could raise up to $1.25 billion. The company is waiting for clearance from the Indian markets regulator and will file a public prospectus once it gets approval. The final valuation for Swiggy could change, but it is currently targeting around $15 billion.
In its last funding round in 2022, Swiggy was valued at $10.7 billion. The company plans to use the money from the IPO to expand its quick commerce service, Instamart, and open more warehouses to compete better with Zomato.
Zomato’s shares have more than doubled since it went public in 2021, and it is now valued at around $28 billion.
According to Goldman Sachs, quick deliveries make up $5 billion, or 45%, of India’s $11 billion online grocery market, and this segment is expected to grow to 70% of the market by 2030.
Although Swiggy’s food delivery business is profitable, its grocery delivery service, Instamart, is still losing money. The company currently operates around 550 grocery warehouses in 35 Indian cities.
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