On September 26, 2024, Swiggy, India's leading food delivery service, filed for a ₹3,750-crore (approximately $1.25 billion) Initial Public Offering (IPO) in Bengaluru. This move follows regulatory approval from the Securities and Exchange Board of India (SEBI) and positions Swiggy for one of the largest listings in India this year.
Founded in 2014, Swiggy has rapidly grown its market presence, now expanding into quick commerce to further enhance its service offerings. The IPO aims to raise ₹37.5 billion, with existing shareholders, including Tencent Europe and Accel India, selling around 185.3 million shares.
Swiggy targets a valuation of $15 billion through this IPO, a significant increase from its last funding round in 2022, which valued the company at $10.7 billion. The firm reported a net loss of ₹23.5 billion for the year ending March 30, 2024, a 44% reduction from the previous year, while revenues increased by 36% to ₹112.47 billion.
The IPO comes at a time when Indian stock markets are experiencing record highs, with over 235 companies raising more than $8.6 billion recently. Analysts expect strong investor interest, particularly due to Zomato's successful IPO in 2021, which has set a positive precedent for tech startups in India.
Funds from the IPO will be utilized to enhance Swiggy's technology infrastructure, expand its quick commerce operations, and repay debts. As the company prepares for its market debut, the implications for investors and the food delivery sector at large are substantial.