Swiggy has reportedly started discussions on plans for an IPO and is eyeing a stock listing in 2024
Swiggy, the Softbank-backed food delivery company, is eyeing a 2024 IPO and has begun discussions with bankers to assess its valuation, after halting the process for months due to weak markets, said three sources with direct knowledge of the matter.
Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion (nearly Rs. 88,350 crore) when it was last raised in 2022, but like many Indian startups , it put plans for an IPO on hold due to a funding crisis and investor concerns about stretched valuations. .
But as global and Indian markets rebounded, Swiggy reinvigorated its IPO planning by inviting eight investment banks to submit proposals in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America, two of the sources said.
Swiggy is using the last funding round’s valuation of $10.7 billion as a benchmark for IPO planning, said one of the sources directly involved in the planning process. But the source said the company has yet to decide on a possible stake sale or final valuation.
Invesco, a minor shareholder of Swiggy, in May valued the Indian company at around $5.5 billion (nearly Rs. 45,400 crore), it said in a filing.
Swiggy originally planned to raise $800 million (nearly Rs. 6,600 crore) to $1 billion (nearly Rs. 8,260 crore) via the IPO, banking sources who worked on it early said. 2022.
Swiggy, JP Morgan and Morgan Stanley did not respond to requests for comment, while Bank of America declined to comment.
All three sources said Swiggy aims to be listed between July and September 2024, which is after India’s national elections are scheduled for May.
Shares of Swiggy rival Zomato have risen 54.8% since the start of the year, a sign of renewed investor confidence in Indian financial markets.
On Friday, Indian grocery startup Zepto said it raised $200 million (nearly Rs. 1,650 crore) in new funding at a valuation of $1.4 billion (nearly Rs. 11,560 crore), this making it the first Indian startup to surpass the $1 billion valuation. score in almost a year.
Swiggy said in May that its core food delivery business had turned profitable, nine years after it began operations, even as its new grocery delivery service, Instamart, continues to suffer losses.
© Thomson Reuters 2023
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