Swiggy , the popular food and grocery delivery platform, is poised to make a significant entry into the public market with an initial public offering ( IPO ) valued at approximately $11.3 billion. The much-anticipated IPO is scheduled for public subscription between November 6 and November 8, with the anchor book portion opening a day earlier on November 5, according to sources familiar with the matter.
The IPO will feature a primary component upsized to around Rs 4,500 crore, while the total size of the offering is expected to range between Rs 11,700 crore and Rs 11,800 crore. Swiggy, backed by major investors such as Prosus, SoftBank, and Accel, aims to enhance retail participation by pricing the IPO at the lower end of previously discussed valuations, which were between $11 billion and $12.5 billion.
In its updated draft red herring prospectus, Swiggy has outlined a fresh issue component of Rs 3,750 crore alongside an offer for sale (OFS) of up to 182.3 million equity shares. The participation of notable foreign and domestic investors, including BlackRock, Canada Pension Plan Investment Board (CPPIB), and SBI Mutual Fund, has been confirmed, indicating strong interest in the offering.
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The competitive landscape for Swiggy includes rivals such as Zomato , which launched its own IPO in July 2021. Zomato’s shares have surged by 136.68 per cent in the past year, creating high expectations for Swiggy’s debut. While Swiggy prepares for its IPO, Zomato is concurrently seeking funds through a Qualified Institutional Placement (QIP).
Swiggy’s last private funding round in January 2022 valued the company at $10.7 billion, following a substantial $700 million investment led by Invesco. The current IPO reflects a gradual increase in valuation, positioning the company strategically in the growing food delivery market, which also includes competitors like Blinkit , Zepto , and BigBasket.
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Prosus holds a significant 31 per cent stake in Swiggy and is expected to recover a substantial portion of its investment through the sale of shares in the OFS component. Other early investors, including Elevation Capital and Norwest, are also set to divest parts of their holdings.
Swiggy received approval from the Securities and Exchange Board of India ( SEBI ) in September, having initially filed for its IPO under a confidential route. This strategy, introduced by SEBI in November 2022, allows companies to keep sensitive information private until finalising their IPO plans, thereby reducing competitive risks.
