SoftBank-backed Indian food delivery giant Swiggy is targeting a valuation of around $15 billion for its upcoming stock market offering to raise $1-1.2 billion, Reuters reported citing sources.
Business Today was unable to verify the development independently.
Swiggy received a shareholder approval in April for an IPO. The company is targeting a valuation of around $15 billion though the final figure can change. Its last funding round, led by Invesco in 2022, valued it at $10.7 billion, the Reuters report added.
According to Goldman Sachs, quick deliveries accounted for $5 billion, or 45 percent, of India’s $11 billion online grocery market in April. It has forecast the segment to reach a 70 percent share of that market by 2030.
Swiggy’s food delivery business is profitable but grocery delivery Instamart business is still loss making.
Its rival Zomato has been hogging limelight at Dalal Street for quite some time as the food delivery platform has delivered multibagger returns A host of brokerages continue to remain positive on the stock and see more steam left.
In the latest news, Zomato will acquire One97 Communication owned-Paytm's entertainment and ticketing business for Rs 2,048 crore. The food delivery giant looks to expand its presence in the 'going-out' segment, while the embattled fintech major seeks to focus on its core financial services offerings.
For investors, this acquisition marks an important step in Zomato’s evolution as it ventures into entertainment and lifestyle services. The deal could potentially increase Zomato’s GOV and profit margins over the next few years, with brokerages projecting solid growth ahead.