Swiggy plans to raise $1.25 billion in an initial public offering and is seeking shareholder approval, the Indian food delivery and instant commerce startup said in a local regulatory filing. .
The Bangalore-headquartered startup, which competes with listed Zomato and StepStone Group-backed unicorn Zepto, has raised $450 million through a new share issue and $800 million from existing backers in its IPO. The company said in a filing that it plans to offer the company's shares. Ministry of Corporate Affairs.
The Indian startup ecosystem has been eagerly awaiting Swiggy's public launch scheduled for later this year. Swiggy's backers include Prosus, Accel, SoftBank and Invesco. A funding round announced in early 2022 gave the company a final valuation of $10.7 billion. Some investors, including Invesco and Barron, have since publicly valued Swiggy at more than $12 billion.
TechCrunch previously reported that Swiggy was scheduled to go public in 2023, but the plan was postponed due to less favorable market conditions.
Swiggy accounts for about 45.8% of India's food delivery market, and the business recorded a GMV of $2.57 billion in 2023, Bernstein analysts wrote in a recent note. Analysts say the company serves 16 million to 17 million monthly transacting users and works with a network of about 375,000 delivery workers.
The startup, which operates in 600 cities in India, has said in the past that its food delivery business is profitable.
Swiggy currently faces stiff competition from Zomato, which also has a market-leading position in the instant commerce business. Since Zomato acquired Brinkit for $568 million in mid-2022, its quick commerce business has already reached half the size of its food delivery business. Growth indicator: Zomato, which went public in 2021, reached an all-time high with a market capitalization of over $20 billion earlier this month.
“Zomato was a latecomer to the food delivery market, but has grown from being a laggard in CY19 to gaining market share in a duopoly market. was similar to $1.2 billion.”
Swiggy's quick commerce business Instamart and Zomato's Blinkit are also facing increased competition from Zepto. The Mumbai-headquartered startup is on track to recently hit $1.2 billion in annual revenue.
Zepto has surpassed Swiggy's Instamart to become India's second-largest instant commerce startup, according to recent estimates from HSBC.