🍲 Swiggy Eyes Larger IPO
Swiggy, the Bengaluru-based food delivery giant, is planning to increase its IPO size by $150M. Initially, the company aimed to raise $450M from a fresh issue of shares, but it now plans to raise $600M. This increase would bring the total IPO size to a possible $1.4B. Swiggy’s goal is to hit a valuation of $15B in the IPO, which is expected to be one of India's largest public offerings in 2024. Shareholders will vote on the proposed changes in a meeting set for October 3.
📈 Existing Investors to Sell $800M in Shares
Swiggy’s IPO also includes an offer for sale by existing investors, potentially worth $800M. The company counts Prosus Ventures, SoftBank, and Accel among its backers. Swiggy was valued at $10.7B during its last fundraising round in early 2022. Now, it aims for a higher valuation of $15B. Its competition is stiff, facing rivals like Zomato, BigBasket, and Zepto in the food delivery and quick commerce markets.
🏪 Quick Commerce Growth
Swiggy’s quick commerce arm, Instamart, is thriving. The company reported that Instamart reached an annual run-rate gross merchandise value (GMV) of $1B for the financial year ending March 2024. Despite this growth, competition in the quick commerce sector is fierce. Zomato, BigBasket, and Zepto are expanding their services, making it tough for Swiggy to dominate. Bank of America analysts predicted increased competition in the next 6-12 months, making Swiggy’s market positioning crucial.
💼 IPO Market Outlook
Swiggy’s IPO comes at a time when Indian firms are expected to raise about $11B through IPOs and follow-on public offerings (FPOs) in the latter half of 2024. Bank of America analysts note that the food delivery and quick commerce sectors are becoming more competitive, with platforms entering each other’s strongholds. The next year will test Swiggy’s ability to maintain its lead as customers have wider choices and higher demands. Swiggy is moving strategically to capture market share through its IPO and expanded services.
Will Swiggy's increased IPO size affect its competition?
