Swiggy Resumes IPO Preparations, Eyes 2024 Listing

Swiggy Hikes Platform Fee To INR 3 For Food Orders

SUMMARY

Swiggy has invited eight investment banks, including Morgan Stanley, JP Morgan, and Bank of America, to present their pitches for collaborating on the IPO

While Swiggy halted its IPO plans amid the sharp decline in valuation of tech startups earlier, the recovery in global and Indian markets has encouraged it to restart the process

Swiggy is targeting an IPO listing window between July and September 2024

Foodtech giant Swiggy is reportedly considering a stock market debut in 2024 and has engaged in discussions with bankers to evaluate its valuation.

This comes after a months-long halt in the process due to unfavorable market conditions, Reuters reported.

Last year, Swiggy began preparations for its initial public offering (IPO) and was reportedly looking to list in 2023. However, the funding winter and sharp fall in valuations of tech startups globally made it keep the plan on the back burner.

However, the recovery in global and Indian markets seem to have encouraged Swiggy to resume its preparations for the IPO. The foodtech company has invited eight investment banks, including Morgan Stanley, JP Morgan, and Bank of America, to present their pitches for collaborating on the IPO.

Swiggy is using its last funding round’s valuation of $10.7 Bn as a reference point for its IPO strategy. However, the startup is yet to take a decision on stake sale or the final valuation, the report said.

Swiggy is targeting an IPO listing window between July and September 2024.

Earlier, investment firm Invesco cut the valuation of Swiggy, valuing it at $5.5 Bn. Invesco was the lead investor during Swiggy’s last funding round of $700 Mn which helped its valuation soar over $10 Bn.

Earlier this year, Swiggy CEO said its food delivery business achieved profitability as of March 2023. “As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in ALL corporate costs; excluding employee stock option costs),” Swiggy CEO cofounder and CEO Sriharsha Majety claimed.

In FY22, the company posted a consolidated loss of INR 3,629 Cr and a revenue of INR 5,704.9 Cr. Of this, INR 3,444.4 Cr came from the food delivery business.

On the other hand, Swiggy’s rival Zomato turned profitable in the first quarter of FY24 with a consolidated profit after tax (PAT) of INR 2 Cr as against a consolidated net loss of INR 186 Cr in the corresponding quarter of the previous fiscal.

The improvement in market sentiment and the financial performance of Zomato has resulted in the startup’s shares rising over 50% year to date.