Swiggy intends to file for a $1.4 billion IPO this weekend

Swiggy, a food delivery and quick commerce platform, is reportedly planning to file for an initial public offering (IPO) worth $1.4 billion this weekend. The IPO would be one of the most anticipated in the Indian tech sector, reflecting the company's growth and expansion into various services beyond food delivery, including grocery and essentials through its Instamart platform.

This weekend, Swiggy is scheduled to submit its draft red herring prospectus (DRHP). This action is being taken just before the Securities and Exchange Board of India (SEBI) approves its confidential file. In the upcoming weeks, Swiggy's executives will travel around India, the US, and Singapore on investor roadshows in response to the DRHP submission.

The move comes amid growing investor interest in India's rapidly evolving tech ecosystem, and it will be interesting to see how the market responds to Swiggy's public debut.

With its platform, Instamart, Swiggy faces stiff competition from rivals like Blinkit, Zepto, and Tata-owned BigBasket. The Indian food delivery market is projected to grow significantly, with estimates predicting it could reach Rs 2 lakh crore by 2030. Swiggy and Zomato currently dominate this sector, commanding over 90 percent of the market.

Key investors in Swiggy include Prosus, SoftBank, and Accel, with Prosus holding the largest stake at 32 percent. During its last funding round in January 2022, Swiggy was valued at $10.7 billion. However, recent market sentiment suggests that Swiggy could achieve a market capitalization of around $10-13 billion upon listing.

The company initially planned to raise Rs 3,750 crore (about $450 million) through a fresh issue as part of a $1.25 billion IPO. The revised plan, approved at an extraordinary general meeting (EGM) on October 3, increases the fresh issue to Rs 5,000 crore (about $600 million), with no changes to the offer-for-sale (OFS) component. This strategic move aims to bolster Swiggy’s cash reserves, helping it navigate the competitive market and continue its growth trajectory.