Photo credit: Swiggy
After Ola, FirstCry, and MobiKwik, foodtech decacorn Swiggy will be the latest tech company to join India’s IPO pipeline. A new regulatory filing shows that the firm has obtained shareholder approval to raise US$1.25 billion in its stock market debut.
Out of that amount, US$450 million will come from new shares, while the remaining US$800 million will come from existing investors offloading their shares. However, the company has not filed IPO documents with the Securities and Exchange Board of India.
It is also planning to raise roughly US$90 million from anchor investors in a pre-IPO round, The Economic Times reported.
Swiggy was valued at over US$10.7 billion in early 2022, with that figure now exceeding US$12 billion, according to some investors. It holds nearly half of India’s food delivery market share.
The company’s gross merchandise value for 2023 was US$2.6 billion, with its services available across over 600 Indian cities. It employs around 375,000 delivery staff and sees 16 to 17 million users transacting monthly.
Though profitable, Swiggy faces stiff competition, especially in the quick commerce space. Main rival Zomato boosted its market standing in the sector by buying Blinkit in 2022, though both companies face challenges from Zepto.
See also: Can Grab’s dine-in services reverse a fall in food delivery growth?
Editing by Putra Muskita and Lorenzo Kyle Subido
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