Indian food delivery giant Swiggy, backed by SoftBank, is preparing for an initial public offering (IPO) targeting a valuation of approximately $15 billion. The company aims to raise between $1 billion and $1.2 billion, making it one of the largest IPOs in India this year.
Swiggy competes directly with Zomato in India’s online food delivery market, and both companies have invested heavily in the emerging quick commerce sector, where groceries and other products are delivered within 10 minutes. Swiggy received shareholder approval in April to raise up to $1.25 billion through the IPO. The company is expected to receive regulatory approval from Indian markets within the next month, after which it will file a public prospectus.
Although Swiggy is targeting a $15 billion valuation, the final figure may vary depending on market conditions. Swiggy has not commented on the matter, citing it as market speculation. The company was last valued at $10.7 billion during a funding round led by Invesco in 2022.
Swiggy plans to use the funds from the IPO to expand its quick commerce service, Instamart, and to establish additional warehouses to enhance its competitive edge against Zomato. Currently, Zomato has a market valuation of around $28 billion, with its shares more than doubling since its 2021 listing.
Quick commerce is rapidly growing in India, with Goldman Sachs reporting that this segment accounted for $5 billion, or 45%, of India’s $11 billion online grocery market as of April. The market share of quick commerce is expected to rise to 70% by 2030.
While Swiggy’s food delivery business is profitable, its Instamart grocery delivery service is still operating at a loss. The company currently operates around 550 grocery warehouses across 35 Indian cities, highlighting its significant investment in expanding this service.