Food delivery firm Swiggy targets $15 billion valuation in IPO: Report

NEW DELHI: Swiggy is targeting a valuation of approximately $15 billion in its upcoming stock market offering, with plans to raise between $1 billion and $1.2 billion through the IPO.
The Indian food delivery giant backed by SoftBank's successful deal would make it one of biggest Indian initial public offerings this year, Reuters reported.
Swiggy faces competition from Zomato in India's online food delivery market, which includes restaurants and cafes.Both companies have significantly invested in the emerging "quick commerce" sector, where groceries and other items are delivered within a mere 10 minutes.
In April, Swiggy secured shareholder approval for an IPO aimed at raising up to $1.25 billion. The company is expected to receive clearance for its confidential filing from the Indian markets regulator within the next month. Following this approval, Swiggy plans to file a public prospectus.
Swiggy is targeting a valuation of approximately $15 billion, though the final figure may vary, Reuters reported. The food delivery giant did not comment on "any market speculation".
Zomato's stock price has seen a significant increase, more than doubling in value boasting a market capitalization of approximately $28 billion, since its initial public offering in 2021.
Invesco led Swiggy's most recent funding round in 2022, which resulted in a valuation of $10.7 billion for the company. Swiggy's food delivery business is profitable; however, its grocery delivery service, Instamart, is still operating at a loss, Reuters reported.
The company currently maintains around 550 grocery warehouses across 35 cities in India.
(With inputs from agencies)