Indian food delivery platform Swiggy to launch $800M IPO early next year

swiggy to launch 800m ipo next year

Indian food delivery firm Swiggy, which SoftBank Group backs, has begun preparations to raise at least $800 million in an IPO scheduled for early next year.

This comes after its main rival Zomato, which witnessed a stellar debut in markets last year, has noticed its stock price decline below its issue price. Zomato commands about 67,600 crore Indian rupees ($9 billion) market capitalization. Zomato was valued at $5.4 billion ahead of its IPO. It reported tepid order value growth in the third quarter of 2021.

Softbank-backed Swiggy has started to add independent directors to the board as the food delivery firm also plans to position itself as a logistics company.

Swiggy recently became a decacorn by raising $700 million after a financing round led by Invesco, in which it doubled its valuation to $10.7 billion, overtaking its rival Zomato.

Swiggy said that the latest round of funding would help it increase growth on its food delivery sector's core platform and make investments in Instamart. The food delivery firm has also stated that it plans to invest $700 million in Instamart, which has expanded to 19 Indian cities in the past few months.

Swiggy's IPO preparation comes as Indian markets witness a reality check after a dream run in 2021.