Foodtech Giant Swiggy Aims For $15 Billion Valuation in IPO

Manvendra HadaAugust 26, 2024

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Three points you will get to know in this article:

Swiggy was valued at $10.7 billion following its latest investment round in 2022.
Swiggy’s investor 360 One estimated a price tag of $11.5 billion by June 2024.
IPO would contain a fresh issue of shares worth INR 3,750.1 crore and an offer-for-sale component worth INR 6,664 crore

Swiggy Eyeing for A $15 Bn IPO, Company Was Last Valued At $10.7 Bn in 2022

Swiggy, the foodtech giant that was last valued at $10.7 billion, is reportedly aiming a $15 billion valuation for its initial public offering (IPO) of $1 billion to $1.2 billion.

According to insiders, Swiggy is aiming for a $15 billion valuation, but this figure may alter.

Swiggy plans to use the revenues from the IPO to increase its presence in the fledgling rapid commerce industry by extending its dark shop network for its quick commerce affiliate Swiggy Instamart.

How Many Shares Will Be Issued in Swiggy IPO?

In April, the startup filed its IPO papers confidentially with the Securities and Exchange Board of India (SEBI).

According to regulatory documents, the IPO offer will contain a fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component of INR 6,664 Cr (approx. $799 Mn).

How Much Value Has Investors Attached To Swiggy?

Earlier today, a report stated that Swiggy’s investor 360 One valued the company at $11.5 billion ahead of its IPO. Swiggy’s other investors, such as Invesco and Baron Capital, have increased the value of their assets.

While Invesco had valued the business at $12.3 billion, Baron Capital increased its valuation to $15.1 billion as of March 31, 2024.

Swiggy was valued at $10.7 billion after its last investment round in 2022. Swiggy shares were selling at INR 320-INR 350 apiece in the unlisted market in June, according to Inc42, resulting in a valuation of $9 billion to $9.5 billion.

Can Swiggy’s IPO Compete with Zomato’s IPO?

Swiggy competes with Zomato in the foodtech business, which is basically a duopoly right now.

Zomato was valued at approximately $7 billion at its IPO pricing and was listed on the bourses in July 2021 with a valuation of $12 billion. Since listing, the startup’s valuation has more than doubled to $27.66 billion as of today.

While the two compete for the top spot in the food delivery sector, Zomato is expected to have a competitive advantage over Swiggy in terms of market share prior to its IPO. In June, Goldman Sachs published a research note estimating that Zomato had a 56-57% market share in the meal delivery sector, beating Swiggy.

Swiggy faces more competition in the fast-commerce market than in the meal delivery industry. Instamart is up against competition from Zepto, BB Now, Flipkart Minutes, and Zomato’s Blinkit.