Expediting IPO plans, homegrown food-delivery platform Swiggy may file its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO) as early as this week, suggests a Bloomberg report citing sources. The new-age internet company is likely to join the strong pipeline of listing candidates soon.
According to the ongoing buzz, the Bengaluru-based Swiggy is likely to raise more than $1 billion from its IPO. The diversified food biz startup is waiting to get approval from India’s Securities and Exchange Board of India (Sebi) to proceed with the IPO filing, the people said.
However, the company may change the issue size, which is still under the discussion program. Swiggy, which has remained tight-lipped on this matter, competes with its arch rival Zomato in food delivery and quick commerce business. However, both the players have diversified business arms too.
Founded in 2014, Swiggy partners with more than 150,000 restaurants across India to help deliver food in the world’s most populous nation, according to its website. Swiggy, which may seek a valuation around $15 billion, had received shareholder approval in April to launch an IPO.
Softbank-backed Swiggy reported Rs 5,476 crore in revenue from operations and a Rs 1,600 crore loss during the first three quarters of the financial year FY24. Swiggy's nearest peer Zomato is valued around $27-28 billion at current valuations. However, Swiggy’s food delivery business is profitable but grocery delivery Instamart business is still loss making.
More listings are expected in coming months. Hyundai Motor Co. is planning to sell shares in its local Indian unit this year, which is expected to be the biggest-ever listing in India,. LG Electronics Inc. has picked banks for a potential listing of its Indian business that could raise as much as $1.5 billion, suggests media reports.