Swiggy IPO Latest Update: Softbank-backed food delivery company, Swiggy, is eyeing stock market listing in 2024. And for this, the firm has initiated talks with bankers to assess its valuation, after halting the process for months due to weak markets, Reuters reported as said by three sources with direct knowledge of the matter.
In its last fundraising in 2022, Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion. But, like many Indian startups, the company puts its IPO (initial public offer) plans on hold amid a funding crunch and investor concerns about stretched valuations.
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However with the global and Indian markets rebounding gradually, Swiggy has restarted its IPO planning by inviting eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley MS.N, JP Morgan JPM.N and Bank of America BAC.N, Reuters reported as cited by two of the sources.
One of the sources, who is directly involved in the planning process, said that the online food delivery company is using the last funding round valuation of $10.7 billion as a benchmark for IPO planning. However, the source said the company has yet to decide on a potential stake sale or final valuation.
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A minor shareholder in Swiggy, Invesco, valued the Indian company at around $5.5 billion in May, it said in a filing.
Banking sources who worked on the company’s IPO plans in early 2022 have said Swiggy had initially considered raising $800 million to $1 billion via the initial public offer.
On being asked, Swiggy, JP Morgan and Morgan Stanley did not respond while Bank of America declined to comment, Reuters reported.
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Swiggy IPO Plans: Expected Listing Date
Meanwhile, the three sources said that Swiggy is aiming to list between July and September in 2024 which would be after national elections in India, which is due by May.
The shares of Zomato, Swiggy rival, have risen 54.8 per cent so far this year, in a sign that investor confidence is returning to India’s financial markets.
On Friday, Indian grocery startup Zepto announced that it has raised $200 million in fresh funding at a valuation of $1.4 billion, making it the first Indian startup to cross the billion-dollar valuation mark in nearly a year. With this, the company also become the first unicorn of 2023 in India.
In May, Swiggy had said its core food delivery business had turned profitable, nine years after starting operations, even as its newer grocery delivery service, Instamart, continues to make losses.
