SoftBank-backed food delivery giant Swiggy is targeting a valuation of around $15 billion for its upcoming stock market offering to raise $1-1.2 billion. According to a report by the news agency Reuters, the deal would make it one of the biggest Indian initial public offerings this year.
Swiggy competes with Zomato in the online restaurant and cafe food delivery sector. Both have made major bets on the new so-called quick commerce boom, in which groceries and other products are delivered in 10 minutes.
According to Reuters, Swiggy received shareholder approval in April for an IPO that would raise up to $1.25 billion. Its confidential filing is expected to be cleared by the Indian markets regulator within a month or so. Following the approval, it will file a public prospectus.
The company is targeting a valuation of around $15 billion though the final figure can change. Its last funding round, led by Invesco in 2022, valued it at $10.7 billion.
Swiggy aimed to use IPO proceeds to expand its quick commerce Instamart business and open more warehouses to better compete with Zomato. Zomato’s shares have more than doubled since listing in 2021 and it has a market valuation of around $28 billion.
Goldman Sachs said in April that quick deliveries accounted for $5 billion, or 45 per cent, of India’s $11 billion online grocery market and forecast the segment to reach a 70 per cent share of that market by 2030.
According to Reuters, Swiggy’s food delivery business is profitable, but the grocery delivery Instamart business is still loss-making. The company has around 550 grocery warehouses in 35 cities.