Wednesday, November 29, 2023

Swiggy eyes $800 million IPO early next year

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Swiggy IPO: Indian food delivery company Swiggy, which is backed by SoftBank Group, has started preparations to raise at least $800 million in an IPO early next year, the Nikkei reported on Tuesday, citing people familiar with the matter.

Swiggy has begun adding independent directors to the board, and plans to position itself as a logistics company and not just a food delivery firm, according to the report.

Swiggy doubled its valuation to $10.7 billion in its latest funding round, Reuters reported last month, citing sources.

Rival Zomato Ltd, which saw a stellar market debut last year has struggled to keep the momentum going. It reported tepid order value growth in the third quarter.

Swiggy and Zomato are neck-and-neck in terms of sales. In December, Swiggy claimed monthly sales of $250 million from its food delivery business, while Zomato posted sales of $733 million in the October-December quarter.

India has seen booming demand for delivery of food and grocery, especially during the pandemic.

Swiggy has expanded its foray into the highly competitive segment of quick commerce delivery, where it is being challenged by Reliance Industries backed Dunzo, Tata Group’s BigBasket and Y Cominator-funded Zepto.

For the rationale over premium valuations, Swiggy is positioning itself as a logistics startup, and not just a food delivery player, the report said citing one of the sources.

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Also read: How to purchase LIC IPO shares using UPI

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