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Published: September 20, 2024
Updated: September 20, 2024

Swiggy Secures SEBI Nod for IPO, Plans to Raise Over $1 Billion in November

Swiggy, one of India’s leading food delivery platforms, has received approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated Initial Public Offering (IPO). The Bengaluru-based company confidentially submitted its draft share sale documents, and reports suggest that the IPO may launch as early as November 2024. Sources close to the development indicate that Swiggy aims to raise over $1 billion through this move.

Swiggy's Journey and Market Impact

Founded in 2014, Swiggy has rapidly grown to become a major player in India’s food delivery space. The company currently partners with over 150,000 restaurants across the country, serving millions of customers. Swiggy’s focus on enhancing its delivery network and expanding into grocery delivery through its Instamart service has positioned it as a formidable competitor in the fast-evolving food tech industry.

Financial Snapshot and Valuation Goals

Swiggy is targeting a valuation of approximately $15 billion from its IPO, following shareholder approval earlier this year. In the first three quarters of FY24, the company generated a revenue of ₹5,476 crore but reported a loss of ₹1,600 crore. Despite this, Swiggy's core food delivery business has reached profitability, while its grocery delivery arm, Instamart, continues to operate at a loss.

Industry Comparison and Competitive Landscape

Swiggy’s closest competitor, Zomato, currently holds a valuation of around $27-28 billion. Both companies dominate India's online food delivery market, though Zomato has a higher market capitalization. With its IPO, Swiggy is aiming to further strengthen its financial position and expand its operations to compete more effectively.

Swiggy’s SEBI approval marks a major milestone for the company as it moves toward a public listing. While the final date for the IPO launch is yet to be confirmed, the November timeline aligns with the company’s strategy to capitalize on favourable market conditions. If successful, the IPO will enable Swiggy to raise over $1 billion, potentially positioning it for long-term growth and stability in a competitive market.