Swiggy, the SoftBank-backed food delivery giant, is eyeing a valuation of approximately $15 billion in its forthcoming initial public offering (IPO) aimed at raising between $1 billion and $1.2 billion. The move is poised to be one of the largest IPOs in India this year, according to a report by Reuters.
The Bengaluru-based company, which directly competes with Zomato in the online food delivery space, has also been aggressively expanding its presence in the rapidly growing quick commerce sector. This segment focuses on delivering groceries and other products within 10 minutes—a service that has been rapidly gaining traction in India.
Swiggy received shareholder approval in April to pursue an IPO with the goal of raising up to $1.25 billion. The company is expected to receive clearance from the Securities and Exchange Board of India (SEBI) for its confidential filing within a month. Following SEBI’s approval, Swiggy will proceed with filing a public prospectus.
According to Reuters, Swiggy is targeting a valuation of around $15 billion through this offering, although the final valuation could vary depending on market conditions. The company was last valued at $10.7 billion following a funding round led by Invesco in 2022.
Proceeds from the IPO are expected to be primarily allocated toward expanding Swiggy’s quick commerce arm, Instamart, as well as opening additional warehouses across the country. This expansion is part of Swiggy’s strategy to enhance its competitive edge against Zomato, which currently holds a market valuation of approximately $28 billion. Zomato’s shares have more than doubled since its listing in 2021.
Goldman Sachs, in an April report cited by Reuters, stated that quick deliveries accounted for $5 billion, or 45 percent, of India’s $11 billion online grocery market. The firm predicts that the quick commerce segment will capture a 70 percent market share by 2030.
Swiggy’s food delivery business has already reached profitability, but the Instamart grocery delivery service is still loss-making. Currently, the company operates around 550 grocery warehouses across 35 cities in India.
In a related development, e-commerce giant Amazon has reportedly approached Swiggy with an interest in its quick commerce business, Instamart. However, according to a report by the Economic Times, no formal offer has been made. The report also highlighted that the complexity of the deal’s structure could pose challenges to its successful completion.