Swiggy Aims for $15 Billion Valuation in IPO
Swiggy, backed by SoftBank, is gearing up for its upcoming IPO with a target valuation of around $15 billion. The company plans to raise $1-1.2 billion through this stock market offering, making it one of the significant IPOs this year.
Competition with Zomato in Quick Commerce
In India’s online food delivery sector, Swiggy faces stiff competition from Zomato. Both companies are vying for dominance in the emerging quick commerce market, where groceries and other essentials are delivered within 10 minutes.
- Swiggy received shareholder approval in April for an IPO that could raise up to $1.25 billion.
- The confidential filing is awaiting clearance from the Indian markets regulator.
- The company aims to file a public prospectus soon after regulatory approval.
Expansion Plans and Market Trends
Swiggy, valued at $10.7 billion in its last funding round, intends to leverage the IPO proceeds to expand its Instamart business and establish new warehouses to compete effectively with Zomato.
- Zomato, with a market valuation of $28 billion, has seen its shares surge since its 2021 listing.
- Goldman Sachs projects the quick commerce segment to capture 70% of India’s online grocery market by 2030.
- Reuters reported in June that Swiggy is intensifying its focus on its Instamart division.
Financial Insights and Market Presence
While Swiggy’s food delivery operations are profitable, its Instamart grocery delivery business continues to operate at a loss. The company boasts approximately 550 grocery fulfillment centers across 35 cities in India.
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