Swiggy, one of India’s top unicorns backed by SoftBank, is gearing up to file its draft red herring prospectus with the market regulator by early September. This move is set to make it the second-largest IPO among venture capital-backed companies in the country. Swiggy plans to raise around Rs 10,400 crore (approximately $1.28 billion) through the offering.
The company aims to get listed within this fiscal year, with a valuation expected to be about 60% of Zomato’s market capitalisation, which would place Swiggy’s valuation between $15 billion and $17 billion. In April, Swiggy confidentially filed initial documents for the IPO, keeping details private as per SEBI’s confidential filing route.
Swiggy has already received shareholder approval for an IPO, including a fresh issue worth Rs 3,750 crore and an offer for sale valued at Rs 6,664 crore. The company also plans to conduct a pre-IPO anchor round of $90 million.
The timing of Swiggy’s IPO coincides with its rival Zomato’s recent success, as Zomato’s share price has surged over 67% in the past six months. While Zomato has reported profits for several consecutive quarters, Swiggy has yet to achieve profitability on a consolidated level.
Swiggy’s public listing will be closely watched, as it joins a growing list of tech companies going public in India. This IPO will also create additional value for its investors, including SoftBank, which has been focusing on selling stakes in its portfolio companies.
