Swiggy, an Indian food delivery service, is planning an IPO worth $1 billion

• ByStartupStory     |    March 9, 2022

According to industry sources, food delivery service Swiggy has formally begun the process to raise up to $1 billion (7,690 crores) in an initial public offering (IPO) by appointing investment banks JP Morgan and ICICI Securities as lead managers. Later on, merchant banks will be employed to oversee the procedure. The IPO is expected to become public by the end of FY23.

Swiggy, which is sponsored by SoftBank Group, raised $10.7 billion (82,330 crores) in its most recent investment round in January. Invesco led the $700 million round, which included new investors such as Baron Capital Group, Sumeru Ventures, IIFL AMC Late Stage Tech Fund, and Kotak.

Swiggy, whose main competitor, Zomato, went public last year, has been rumored to be considering an IPO for some time. In recent quarters, it has informed some investors that it is preparing for an IPO. Invesco, IIFL AMC Late Stage Fund, and Axis Growth were among the late-stage and pre-IPO investors who participated in the startup’s most recent funding round.

Swiggy has also been trying to strengthen its finances, and by the third quarter of last year, it had totally recovered from the losses caused by the pandemic. It’s also preparing to make some significant acquisitions and investments. According to one source familiar with the situation, the business is in talks to buy restaurant reservation software Dineout.

Swiggy announced in January that the gross order value of its food delivery business had nearly doubled and that Instamart, its quick delivery service, was on track to reach a $1 billion annual GMV run rate in the next three quarters. The market for food services in India is estimated to reach $97 billion by March 2026, according to Bernstein analysts in client research last year.

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