Foodtech

Swiggy Gears Up for Rs 10,400 Crore IPO Filing by Early September

• ByStartupStory     |    August 20, 2024

Swiggy, the Indian online food ordering and delivery giant, is preparing to file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) by the first week of September, according to sources cited by YourStory. The move positions Swiggy for one of the most significant public offerings in India’s startup ecosystem, following the footsteps of Paytm.

Swiggy aims to raise Rs 10,400 crore ($1.28 billion) through its initial public offering (IPO), marking it as the second-largest IPO by a venture capital-backed company in India. This will make Swiggy the only venture capital-backed startup to surpass Rs 10,000 crore in a public listing, trailing only Paytm.

“The idea is to get listed this fiscal year, and so we are moving towards that. The thumb rule is that Swiggy’s valuation will be 60% of Zomato’s market capitalization, given its profitability and revenue. So in that context, Swiggy will be valued at around $16 billion or 15-17, to give a range,” one of the sources familiar with the matter told YourStory on condition of anonymity.

Swiggy initially took steps towards its IPO in April when it confidentially filed documents with SEBI for a Rs 10,400 crore public listing. The IPO will comprise a fresh issue of Rs 3,750 crore ($450 million) and an offer for sale amounting to Rs 6,664 crore ($800 million). The company also secured shareholder approval for its IPO, solidifying its plans to enter the public market.

In addition, Swiggy is planning a pre-IPO anchor round of Rs 750 crore ($90 million) to bolster its financial position ahead of the listing.

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