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Swiggy is preparing for an IPO

Coffee Insights

— 2 min read
Swiggy is preparing for an IPO
Photo by Firosnv. Photography / Unsplash

Swiggy, is gearing up for a massive $1.3 billion IPO, targeting a September launch and a $15 billion valuation.

Why it matters: The IPO will mark a significant step for the company as it aims to become one of the largest venture capital-backed IPOs in India, second only to Paytm and could set the tone for future tech unicorn listings in the country.

Context: Swiggy, backed by Prosus and SoftBank, is India's largest food delivery platform and was valued at $10.7 billion in its last funding round in 2022.

  • The IPO is expected to open for subscription in early September.
  • The company is targeting a valuation of approximately $15 billion.
  • The fresh share issue size is expected to be ₹3,750 crore ($450 million).
  • An offer for sale of up to an aggregate amount of Rs 6,664 crore ($800 million) 

The expected valuation of $15 billion represents a significant jump from Swiggy's last funding round valuation of $11.5 billion in June 2024.

Where will the money go: Swiggy plans to utilize the IPO proceeds for several key initiatives:

  • Significant expansion of its Instamart quick commerce business
  • Adding more warehouses and enhancing last-mile delivery capabilities
  • Investing in research and product development

In the Numbers: Swiggy's financial performance shows strong growth despite ongoing losses:

  • Revenue from operations increased to $1.02 billion for the nine months ending December 2023.
  • Net loss stood at $207 million for the same period.
  • The company's food delivery operations are profitable, but Instamart remains loss-making.

Bottomline: Swiggy's robust growth and expanding market share underscore the rapid adoption of food delivery and quick commerce services in India. The food delivery and quick commerce market is expected to reach $20 billion by 2025.

The big picture: This IPO is one of India's biggest in a year where the country's equities markets have reached multiple record highs. It comes as the Indian startup ecosystem is maturing, with several tech companies going public in recent years.

Zoom out: Swiggy's success could shape how investors view quick commerce in India. Its performance may influence the future of similar tech startups and set expectations for upcoming IPOs in the country's rapidly evolving digital economy. 

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