The family office of Bollywood legend Amitabh Bachchan has reportedly acquired a minor stake in the food delivery platform Swiggy. This investment highlights the increasing interest in the fast-growing quick-commerce sector, driven by the surge in demand for rapid delivery services.
According to The Economic Times, Amitabh Bachchan’s family office purchased this stake from Swiggy’s employees and early investors. Although the specific financial details of the transaction have not been disclosed, it is described as significant.
This acquisition comes as Swiggy gears up for its initial public offering (IPO), targeting a valuation of $15 billion. The SoftBank-backed company is looking to raise between $1 billion and $1.2 billion through the stock market offering, positioning it as one of the largest Indian IPOs of the year.
Raamdeo Agrawal, chairman of Motilal Oswal Financial Services, is also reported to have taken a stake in Swiggy, further underscoring the growing interest in the company.
Swiggy IPO News
The Economic Times reports that Swiggy is aiming for a valuation of around $15 billion for its upcoming IPO. The company received shareholder approval in April for an offering that would raise up to $1.25 billion. The confidential filing is expected to be cleared by the Indian markets regulator in the coming month, after which the company will file a public prospectus.
In response to a Reuters query, Swiggy stated, “We cannot comment on any market speculation.”
The company’s last funding round, led by Invesco in 2022, valued Swiggy at $10.7 billion. The IPO proceeds are expected to be used to expand its quick commerce Instamart business and open additional warehouses to enhance competition with rival Zomato.
Swiggy’s food delivery business has achieved profitability, but its grocery delivery segment, Instamart, remains loss-making. The company currently operates around 550 grocery warehouses across 35 Indian cities.
Goldman Sachs reports that quick deliveries account for $5 billion, or 45%, of India’s $11 billion online grocery market, with projections indicating the segment could capture 70% of the market by 2030.
Zomato, Swiggy’s primary competitor, has seen its shares more than double since its 2021 listing and now boasts a market valuation of approximately $28 billion.