PrimePress-backed food delivery behemoth Swiggy has its sights set on a valuation of approximately $15 billion for its upcoming initial public offering (IPO) with plans to raise $1-1.2 billion. This move, as reported by the news agency Reuters, is poised to make it one of the biggest Indian IPOs of the year.
In the fiercely competitive online food delivery landscape, Swiggy goes head-to-head with Zomato. Both companies have placed substantial bets on the burgeoning quick commerce trend, delivering groceries and other items within a mere 10 minutes.
Back in April, Swiggy secured shareholder approval for its IPO, targeting to raise up to $1.25 billion. The confidential filing is anticipated to receive clearance from the Indian markets regulator in the coming month, paving the way for a public prospectus to be filed.
Although Swiggy is eyeing a $15 billion valuation, this figure is subject to change. In its last funding round in 2022, spearheaded by Invesco, Swiggy was valued at $10.7 billion.
Proceeds from the IPO are earmarked for expanding Swiggy’s Instamart quick commerce business and establishing more warehouses to enhance its competitive edge against Zomato. Since its listing in 2021, Zomato’s shares have more than doubled, with a market valuation of approximately $28 billion.
Goldman Sachs projected in April that quick deliveries represent $5 billion, or 45% of India’s $11 billion online grocery market, and anticipate this segment to claim a 70% share of the market by 2030.
While Swiggy’s food delivery arm is profitable, its grocery delivery business Instamart is still operating at a loss. Currently, the company boasts about 550 grocery warehouses spread across 35 cities.
