Amitabh Bachchan’s family office picks small stake in Swiggy: Report

Bollywood superstar Amitabh Bachchan’s family office has reportedly picked a small stake in food delivery and quick commerce company Swiggy. This comes after reports that the company is aiming for an initial public offering, targeting a valuation of $15 billion. 

According to a report in The Economic Times, Bachchan’s family office picked up the stake by purchasing shares held by the company’s employees and early investors. The amount invested by Bachchan’s family office is yet to be ascertained, but is expected to be a sizeable cheque.

The report further stated that Motilal Oswal Financial Services chairman Raamdeo Agrawal also picked a stake in Swiggy. Agrawal also picked a stake in quick-commerce firm Zepto through its $665 million funding.

These secondary share sales are believed to have happened by assigning a valuation of around $10-11 billion to the company, the report stated. 

SWIGGY IPO

SoftBank-backed Swiggy is targeting a valuation of approximately $15 billion for its upcoming stock market offering to raise $1-1.2 billion, according to a report in news agency Reuters that quoted sources. This would make it one of the largest Indian initial public offerings this year. Swiggy, which competes with Zomato in India's online food delivery sector, has also ventured into the quick commerce market, delivering groceries and other products in 10 minutes.

In April, Swiggy received shareholder approval for an IPO to raise up to $1.25 billion, and its confidential filing is expected to be cleared by the Indian markets regulator soon. Swiggy aims to use the IPO proceeds to expand its quick commerce Instamart business and open more warehouses. 

Swiggy's last funding round in 2022, led by Invesco, valued the company at $10.7 billion.

Goldman Sachs reported in April that quick deliveries account for $5 billion of India's $11 billion online grocery market and projected this segment to reach a 70 per cent share by 2030. Swiggy's food delivery business is profitable, but its Instamart business remains loss-making. The company operates around 550 grocery warehouses in 35 Indian cities.