BENGALURU: Swiggy, one of India’s leading food delivery platforms, has announced its plans to launch an initial public offering (IPO) valued at up to Rs120 billion, equivalent to approximately $1.4 billion, in early November.
The strategic move comes at a time when the food delivery market in India and the broader Middle East and North Africa (MENA) region is experiencing significant growth and competitive evolution.
The IPO, as reported by IFR, will include primary shares amounting to Rs37.5 billion and approximately 186 million secondary shares. Analysts have noted that Swiggy is targeting a valuation in the range of
$12.5 billion to$ 13.5 billion, which falls short of the previously anticipated $15 billion.
The valuation adjustment underscores the dynamic nature of market conditions and investor sentiment in the current economic climate.
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Prominent investors participating in this IPO include Accel India IV (Mauritius), Apoletto Asia, Alpha Wave Ventures, and Tencent Cloud Europe, among others.
Furthermore, a consortium of reputable financial institutions such as Avendus, Bank of America, and Citigroup will serve as lead managers, ensuring a well-structured process for the public offering.
In the context of its rivalry with Zomato, which successfully raised Rs93.8 billion in its IPO in 2021, Swiggy’s upcoming offering is anticipated to enhance its competitive standing in the market. This is particularly relevant as Zomato has recently received board approval for a qualified institutional placement aimed at raising up to $1 billion, a move intended to bolster its market position.
Beyond the Indian landscape, food delivery companies in the MENA region are also looking towards IPOs as a means to expand their capital base.
For instance, Delivery Hero is preparing for a listing of its Emirati subsidiary Talabat on the Dubai stock exchange later this year, highlighting a regional trend towards public offerings in this sector.
Focus on NRIs
Meanwhile, Swiggy has followed Chicking by introducing an innovative feature called “international login.” The new functionality enables users residing abroad to order food and groceries for their family and friends in India.
Operational in 27 countries, including prominent markets such as the United States, Canada, Germany, the United Kingdom, Australia, and the United Arab Emirates, this feature promises to foster connections across borders.
The launch of this capability is particularly timely, coinciding with the festive season when family gatherings and shared meals hold great significance. As Phani Kishan, co-founder and Chief Growth Officer of Swiggy, aptly stated, “Food and gifts are essential to family gatherings, especially during festivals.” This sentiment underscores the emotional ties that food fosters, making it an integral part of celebrations.
By catering to the needs of international customers who wish to maintain ties with their loved ones in India, Swiggy not only expands its user base but also enhances the experience of those living away from home.
The introduction of the international login feature represents a thoughtful response to the evolving demands of consumers in an increasingly globalized world. In doing so, Swiggy reaffirms its commitment to making food delivery a seamless and meaningful experience, even across vast distances.
