Swiggy, one of India's largest food delivery and quick commerce startups, is seeking a valuation of up to $11.3 billion in its initial public offering, which would represent a 57% discount to Zomato's market capitalization.
The loss-making Bengaluru-based company has set an IPO price band of 371 to 390 rupees ($4.41 to $4.64) per share for next month's IPO. At the high end, this valuation represents only a small premium to the company's private market value of $10.7 billion in early 2022, and falls short of recent valuations by mutual fund investors Invesco and Baron.
Swiggy aims to raise $1.34 billion, of which $535 million will come from a new equity issue and the rest from exits from existing investors. Swiggy, which led India's food delivery market four years ago and pioneered quick commerce, has since lost significant market share in both categories. It currently ranks third in quick commerce behind Zomato's BlinkIt and Nexus-backed Zepto.
Zomato recently announced plans to raise up to $1 billion from qualified institutional investors and currently has a market capitalization of $26.2 billion.