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Swiggy invites investment banks for IPO pitch; aims for listing in H2CY24: Report

Swiggy invites investment banks for IPO pitch; aims for listing in H2CY24: Report

Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion in its last fundraising in 2022

Business Today Desk
Business Today Desk
  • Updated Aug 25, 2023 7:29 PM IST
Swiggy invites investment banks for IPO pitch; aims for listing in H2CY24: ReportSwiggy's food delivery business turned profitable recently
SUMMARY
  • SoftBank-Backed Swiggy invites investment banks for IPO pitch
  • Swiggy eyes July-Sept 2024 for IPO, after earlier pause, says report
  • Swiggy's food delivery business turned profitable recently

Swiggy, the SoftBank-backed food delivery company, is eyeing a 2024 stock market listing and has initiated talks with bankers to assess its valuation, after halting the process for months due to weak markets, said a report on Friday.

Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion in its last fundraising in 2022 but like many Indian startups put its IPO plans on hold amid a funding crunch and investor concerns about stretched valuations, reported Reuters quoting sources.

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As global and Indian markets have rebounded Swiggy has restarted its IPO planning by inviting eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America, the report said.

Swiggy is using the last funding round valuation of $10.7 billion as a benchmark for IPO planning, said a source to Reuters, who is directly involved in the planning process. But this source said the company is yet to decide on a potential stake sale or final valuation.

Invesco, a minor shareholder in Swiggy, in May valued the firm at around $5.5 billion.

Swiggy had initially considered raising $800 million to $1 billion via the IPO, banking sources who worked on it in early 2022 told Reuters.

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Three sources told Reuters Swiggy is aiming to list between July-September 2024, which would be after Lok Sabha polls, which are expected to be conducted by May.

Swiggy rival Zomato's ZOMT.NS shares have risen 54.8% so far this year, in a sign that investor confidence is returning to India's financial markets.

On Friday, Indian grocery startup Zepto said it has raised $200 million in fresh funding at a valuation of $1.4 billion, making it the first Indian startup to cross the billion-dollar valuation mark in nearly a year.

Swiggy in May said its core food delivery business had turned profitable, nine years after starting operations, even as its newer grocery delivery service, Instamart, continues to make losses.

Published on: Aug 25, 2023 7:29 PM IST
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