Swiggy Eyes $15 Bn Valuation For Its IPO

Swiggy Gets SEBI Nod For IPO, Eyes Listing In November

SUMMARY

Swiggy, which is looking to raise $1 Bn to $1.2 Bn via its IPO, was valued $10.7 Bn after its last funding round in 2022

Swiggy’s investor 360 One gave it a price tag of $11.5 Bn as of June 2024

The foodtech startup’s IPO will include a fresh issue of shares worth INR 3,750.1 Cr and an offer-for-sale component worth INR 6,664 Cr, as per its regulatory filings

Foodtech major Swiggy, which was last valued at $10.7 Bn, is reportedly targeting a valuation of $15 Bn valuation for its initial public offering (IPO) of $1 Bn to $1.2 Bn.

Citing sources, Reuters reported that while Swiggy is targeting $15 Bn valuation, the final figure may change.

Swiggy will use the proceeds from the IPO to bolster its footprint in the fledgling quick commerce space by expanding its dark store network for its quick commerce arm Swiggy Instamart.

Earlier today, a report said Swiggy’s investor 360 One gave it a price tag of $11.5 Bn ahead of its IPO. The company’s other investors, including Invesco and Baron Capital, have marked up the value of their investments in Swiggy. While Invesco last valued the startup at $12.3 Bn, Baron Capital marked up its valuation to $15.1 Bn as of March 31, 2024.

It is pertinent to note that Swiggy was valued at $10.7 Bn after its last funding round in 2022. In June, Inc42 reported that shares of Swiggy were trading at INR 320-INR 350 apiece in the unlisted market, which translated to a valuation of $9 Bn – $9.5 Bn.

The startup took the confidential route to file its IPO papers with the Securities and Exchange Board of India (SEBI) in April.

Its IPO offer will include a fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component worth INR 6,664 Cr (around $799 Mn), as per regulatory filings.

Swiggy competes with Zomato in the foodtech market which is largely a duopoly currently.

Zomato was valued at about $7 Bn as per its IPO price and got listed on the bourses in July 2021 at a valuation of $12 Bn. Since listing, the startup’s valuation has more than doubled to $27.66 Bn as of today.

While the two compete for the top spot in the food delivery market, it is estimated that Zomato has a leg up over Swiggy in terms of market share ahead of its IPO. In June, Goldman Sachs released a research note which estimated that Zomato likely holds a 56-57% market share in the food delivery market, thus outpacing Swiggy.

In terms of quick commerce, Swiggy sees more competition than the food delivery space. Besides Zomato’s Blinkit, Instamart faces competition from Zepto, BB Now, as well as new entrant Flipkart Minutes.