On October 31, 2024, India's food delivery giant Swiggy announced that major investors, including Norway's sovereign wealth fund Norges and Fidelity, have placed bids exceeding $15 billion for its upcoming IPO. This amount is 25 times the $605 million allocated for such investors, signaling robust interest in the company's market entry.
Swiggy, backed by SoftBank, is set to launch its $1.35 billion IPO next week, which will be the second-largest stock offering in India this year. Following a recent stock market correction, Swiggy has reduced its estimated valuation from $15 billion to $11.3 billion, a 25% decrease.
The IPO's anchor book has attracted bids from top investors like Capital Group, BlackRock, and the Canada Pension Plan Investment Board, reflecting a growing enthusiasm for India's quick commerce sector, where delivery times can be as short as 10 minutes. Research firm Datum Intelligence predicts quick commerce sales in India will reach $6 billion this year, a significant rise from $100 million in 2020.
As Swiggy and its competitors, including Zomato and Reliance, intensify their focus on rapid delivery services, they aim to outpace global players like Amazon. The ongoing bidding process highlights the competitive landscape and investor confidence in the quick commerce market.