Swiggy’s India IPO has received bids worth over $15 billion from major investors like Norway’s Norges Bank and Fidelity, according to sources. This is 25 times the $605 million portion set aside for large investors, and the bidding is still ongoing.
The SoftBank-backed food and grocery delivery company is planning to raise $1.35 billion in what will be India’s second-largest IPO of the year. After a recent stock market dip, Swiggy lowered its IPO valuation to $11.3 billion from an earlier $15 billion estimate.
The IPO’s strong demand shows a rising interest in India’s food delivery and “quick commerce” sector, where items are delivered in 10 minutes. Other prominent investors include Capital Group, BlackRock, and the Canada Pension Plan Investment Board, say insiders.
Quick commerce sales in India are projected to reach $6 billion this year, up from $100 million in 2020, according to Datum Intelligence. Companies like Swiggy, its main competitor Zomato, and Reliance are betting on fast delivery for a wide range of products, from essentials to electronics, often beating Amazon on speed.
