Swiggy, one of India’s leading food delivery platforms, is gearing up to launch its much-anticipated IPO. With a valuation that could reach up to $13 billion, the company has already filed its draft papers with SEBI, aiming to raise over ₹10,000 crore. While the food delivery market is highly competitive, Swiggy’s consistent growth and celebrity endorsements are creating buzz ahead of its public debut.
A Star-Studded Investor Lineup
It’s not just venture capital firms backing Swiggy. Big names from Bollywood and the sports world, including Amitabh Bachchan, Madhuri Dixit, Karan Johar, and cricketers like Rahul Dravid and Zaheer Khan, have also put their money into the company. Even Motilal Oswal Financial Services Chairman Ramdev Aggarwal has invested in Swiggy.
The presence of global funds such as SoftBank Vision Fund, Prosus, Accel, and Elevation Capital further strengthens Swiggy’s investment portfolio, making it a top contender in the stock market.
The Journey from 2014 to IPO
Founded in 2014 by Sriharsha Majeti, Nandan Reddy, and Rahul Jaimini, Swiggy initially focused on food delivery but has since diversified into other areas, such as hyperlocal delivery services. With over 1.5 lakh restaurants across India on its platform, Swiggy has grown its reach in both metro cities and smaller towns, providing a wide variety of food and grocery options to consumers.
Decreasing Losses, Increasing Revenue
Despite posting a loss of ₹2,350 crore in FY24, Swiggy has shown signs of recovery by reducing its losses significantly from ₹4,179 crore in FY23. The company’s revenue has also increased by 36%, reaching ₹11,247 crore in FY24. This growth is attributed to the company’s focus on cutting costs and improving margins ahead of its IPO.
Swiggy’s ability to penetrate the grocery delivery space, competing with companies like BigBasket and Walmart’s quick delivery service, has further strengthened its market presence.
The Competition: Zomato vs. Swiggy
Zomato, Swiggy’s primary competitor, launched its IPO in 2021 and has since achieved profitability. With a revenue of ₹12,114 crore and a profit of ₹351 crore in FY24, Zomato has proven its strength in the market. It has also diversified into the quick commerce segment with the acquisition of Blinkit, allowing it to expand its offerings.
Currently, Swiggy and Zomato hold about 90% of India’s food delivery market. Investors are eagerly waiting to see how Swiggy’s IPO will compare to Zomato’s and who will ultimately dominate India’s ₹2 lakh crore food delivery industry.
IPO Details and Expected Valuation
Swiggy’s IPO will see the company issuing new shares worth ₹3,750 crores while existing investors will sell shares worth ₹6,500 crore through an Offer for Sale (OFS). The funds raised will help Swiggy expand its operations further. The company was valued at $10.7 billion in 2022, and its post-IPO valuation could be between $10-13 billion.
Swiggy’s competition isn’t limited to Zomato. The food delivery giant also faces challenges from BigBasket and Flipkart in the grocery and quick delivery space. However, Swiggy’s strong backing from investors, including global and celebrity names, makes it a highly anticipated IPO in the market.
