Report: Swiggy to Seek $15 Billion Valuation in IPO

Indian food delivery company Swiggy is reportedly planning to launch one of the country’s biggest initial public offerings (IPOs) of the year.

The company aims to raise $1 billion to $1.2 billion at a valuation of around $15 billion, Reuters reported Friday (Aug. 23), citing unnamed sources.

Swiggy said in the report that it would not comment on “any market speculation.”

Like its competitor Zomato, Swiggy operates online and offers food deliveries from restaurants and cafes as well as “quick commerce” 10-minute deliveries of groceries and other products, according to the report.

Swiggy was valued at $10.7 billion in a 2022 funding round, while Zomato currently has a market valuation of about $28 billion after seeing its shares more than double since listing in 2021, the report said.

Swiggy received shareholder approval in April for an IPO, per the report.

The company’s confidential filing is expected to be approved by India’s markets regulator in about a month, the report said.

Swiggy said in a July press release that it expects the food services market in India to have a compound annual growth rate (CAGR) of 10% to 12% through 2030, and the online food delivery market to have a CAGR of about 18%.

“The Indian food services market, especially food delivery, has witnessed buoyant growth over the last few years,” Rohit Kapoor, CEO, Food Marketplace at Swiggy, said in the release. “Higher incomes, digitization, improved customer experience and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years.”

Indian cloud kitchen firm Kitchens@ secured $65 million in Series C funding from London-based emerging growth investment firm Finnest in December. The company said at the time that it would use the new funds to expand its hybrid model, Dinerium, which combines offline and online elements and offers “a diverse selection of premium brands right at patrons’ tables.”

Zomato said Wednesday (Aug. 21) that it intends to acquire the entertainment ticketing business of Paytm, an Indian payments and financial services distribution company.

“Our stated mission as an organization is to build products and services that power India’s changing lifestyles,” Zomato said in an announcement. “We believe, over the next decade and beyond, going-out experiences will continue to grow strong in lockstep with overall growth in lifestyle and consumption.”