According to a report from TechCrunch.com, Swiggy, an Indian startup specializing in food delivery and instant commerce, has revealed plans to raise $1.25 billion in its upcoming initial public offering (IPO) after receiving approval from its shareholders. The company, headquartered in Bengaluru, aims to generate $450 million by issuing new shares and offering $800 million of shares from existing investors during the IPO process, as stated in documents filed with the Ministry of Corporate Affairs. Swiggy faces competition from established players like Zomato and Zepto, with whom it competes for market share.

Swiggy's public debut has been eagerly awaited within the Indian startup community, with notable backers including Prosus, Accel, SoftBank, and Invesco. The company, valued at $10.7 billion in early 2022, has seen its valuation rise to over $12 billion, according to public statements from investors such as Invesco and Baron. Although Swiggy initially planned to go public in 2023, it postponed its IPO due to unfavourable market conditions.

With a commanding 45.8% share of the Indian food delivery market, Swiggy reported a GMV of $2.57 billion in 2023, serving millions of monthly transacting users across 600 cities. Its food delivery business is profitable, according to past statements from the company. Despite its success, Swiggy faces stiff competition from Zomato, which dominates the instant commerce sector. Zomato's acquisition of Blinkit for $568 million in mid-2022 propelled its quick commerce business to equal the size of its food delivery business. Zomato, which went public in 2021, recently reached a market capitalization of over $20 billion.

Bernstein analysts noted that despite being a late entrant to the food delivery market, Zomato has steadily gained market share, reaching a similar size to Swiggy in 2020 at $1.2 billion. Additionally, Swiggy's quick commerce business, Instamart, and Zomato's Blinkit face increased competition from Zepto, a Mumbai-based startup on track to achieve $1.2 billion in annual sales.


Source: https://techcrunch.com/2024/04/24/india-swiggy-secures-shareholder-approval-for-1-2-billion-ipo/