Indian food delivery startup Swiggy is considering increasing the size of its initial public offering by $150 million, aiming to raise a total of $1.4 billion in what is likely to be one of India's largest public offerings this year.
The Bengaluru-based startup plans to seek shareholder approval to raise up to 50 billion rupees ($600 million) through a new share issue, up from an earlier planned $450 million, according to a 15-page notice of a general meeting filed late last week.
Swiggy, which was valued at $10.7 billion in its last fundraising in early 2022, is considering going ahead with plans to sell about $800 million worth of shares from existing investors in an IPO, people familiar with the matter told TechCrunch. The startup is seeking a valuation of about $15 billion in the IPO, the people said.
Swiggy is set to hold a shareholders' meeting on October 3 to get consent for the revised IPO plan, which includes both an expanded new issue and an offer by existing shareholders. The notice was first reported by Indian news outlet Entrack.
Swiggy, backed by investors including Prosus Ventures, SoftBank and Accel, is one of India's leading food delivery and quick commerce startups. The company reported revenue of $1.4 billion for the fiscal year ending March 2024. Its quick commerce service, Instamart, is expected to hit $1 billion in total merchandise volume annually, the company said at the time.
The startup faces stiff competition from Zomato, Tata-owned BigBasket and General Catalyst-backed Zepto. “We expect the quick commerce space to become increasingly competitive over the next 6 to 12 months,” analysts at Bank of America wrote in an investor note late last month.
“The top three platforms are moving into each other's territory. Over the past 6-12 months, the top three peers have increased their product assortment and leased larger dark stores, thereby catering to higher demand (partially by shifting some of their e-commerce market to Quick.com). It will be challenging for the top three to gain traction in the other platforms' strongholds as users are less price sensitive and already have a wider range of product options,” the note said.
Bank of America analysts said last month that Indian companies are poised to raise about $11 billion through IPOs and FPOs later this year.