Swiggy IPO: Big news is coming regarding the Initial Public Offer (IPO) of food and grocery delivery company Swiggy. The company can submit its application i.e. DRHP (Draft Red Herring Prospectus) to market regulator SEBI by the end of this week.
After submitting the DRHP, the company’s management can organize road shows in India, the US, and Singapore in the coming weeks to attract investors.
Swiggy’s IPO has been awaited for a long time. Many new-age companies have been listed on the stock market in the last few years amid the ongoing bull rally in the stock market.
A source said, “The time gap between DRHP and RHP is usually less for confidential filings, as SEBI has already examined all the information.”
Swiggy recently increased the size of its IPO to $1.4 billion (about Rs 11,600 crore). This IPO of Swiggy is coming at a time when competition is increasing in the field of online grocery delivery.
Swiggy’s online platform is Instamart. It is currently facing competitors from Zomato-owned Blinkit, Zepto, and Tata-owned BigBasket.
However, Swiggy and Zomato continue to dominate the food delivery business. These two companies hold more than 90 percent of the food delivery industry.
According to a report the market for food delivery is projected to reach the amount of 2 lakh crore rupees in 2030. Zomato’s share was listed on the stock market in 2021. Swiggy’s major shareholders include Prosus (32 %), SoftBank (8 %), and Excel (6 %).
Other than that, numerous other investors, including Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA) as well as GIC of Singapore. GIC are also shareholders.
Swiggy has raised its last round of funds in January 2022. The money was raised at a value in the range of 10.7 billion dollars.
However, in the last few months, bankers have expressed confidence that Swiggy could be listed at a valuation of around $10 to $13 billion.
Quick Fact
| Company name | Swiggy |
|---|---|
| IPO size | $1.4 billion (₹11,600 crore) |
| DRHP filing | By the end of the week |
| Roadshows | India, US, Singapore |
| Competitors (grocery) | Blinkit, Zepto, BigBasket |
| Dominant in | Food delivery |
| Market share in food delivery | 90% (with Zomato) |
| Projected food delivery market (2030) | ₹2 lakh crore |
| Last fundraise | January 2022 |
| Last valuation | $10.7 billion |
| Major shareholders | Proses 32%, SoftBank 8%, Excel 6% |
| Investors | Elevation Capital, DST Global, Norwest, Tencent, QIA, GIC of Singapore |
| Expected listing valuation | $10 to $13 billion |
| Possible target listing | Around $10 to $13 billion |
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