Swiggy has filed for a $1.25 billion initial public offering (IPO) in one of India’s largest listings this year, amid a surging stock market. The SoftBank-backed food delivery firm submitted its IPO papers on Thursday, seeking a $15 billion valuation, according to a source familiar with the matter. Swiggy aims to sell shares worth 37.5 billion rupees ($448.56 million), while key investors like Prosus, Accel India, and Tencent Europe plan to sell approximately 185.3 million shares, according to the company’s draft prospectus.
Swiggy’s decision to go public comes as India’s stock markets reached record highs, with over $8.6 billion raised from 235 companies so far this year, more than double the amount raised in 2023, according to LSEG data. The Bengaluru-based company’s last funding round in 2022, led by Invesco, valued it at $10.7 billion. With Zomato, its primary competitor, experiencing strong performance since its 2021 IPO, analysts expect Swiggy’s offering to attract significant investor interest. WealthMills Securities equity strategist Kranthi Bathini noted that investor sentiment towards IPOs is currently positive.
Swiggy intends to use the IPO proceeds to expand its quick commerce business, enhance its warehouse network, repay debt, and improve its technology infrastructure, as detailed in the prospectus. The company reported a net loss of 23.5 billion rupees for the fiscal year ending March 30, 2024, a 44% reduction from the previous year. Revenue, however, climbed by 36%, reaching 112.47 billion rupees. Swiggy’s quick commerce unit, Instamart, has gained a 20-25% market share, second to Zomato-owned Blinkit, which holds 40-45%, according to a UBS note.
While food delivery still accounts for about half of Swiggy’s revenues, the company has been focusing heavily on quick commerce, a growing segment that saw its revenue double to 9.79 billion rupees in fiscal 2024. In this segment, Swiggy competes with Zomato, as well as other players like Zepto, BigBasket, and Flipkart’s “Minutes.”
