Swiggy, India’s one of the leading food delivery platforms, is next in line to release its IPO (initial public offering). The company recently turned into a public entity and is also in the process of shortlisting bankers to run the IPO operations. Apart from that, they are planning to offer a deal to high net-worth individuals (HNIs) before the IPO, where they can buy shares at a discount of 20% on its current valuation.
An anonymous source disclosed that the company is offering shares at Rs 350 a piece at a valuation of 80000 crores, which is roughly a 20% discount.
Swiggy’s valuation
According to sources, US-based investor Invesco recently marked up Swiggy’s valuation to 12.7 billion dollars. Also, this is the third straight valuation markup by Invesco, which can prove to be extremely beneficial when the company releases its IPO.
Last year, Invesco initially adjusted Swiggy’s valuation upward to $8.5 billion by October 31st from $7.8 billion in July. Before that, there was a downward revision by Invesco, bringing Swiggy’s valuation to $5.5 billion in January 2023 from its peak of $8.2 billion in October 2022. This increasing valuation indicates an optimistic outlook for the company.
Swiggy’s increasing revenue
Swiggy reported Rs 5,476 crore in revenue from operations and a loss of Rs 1,600 crore in the first three-quarters of FY24. In comparison, its revenue and losses for the fiscal year ending March 2023 were Rs 8,265 crore and Rs 4,179 crore, respectively.
On the other hand, Zomato recorded Rs 8,552 crore in revenue from operations and a profit of Rs 178 crore during the first three-quarters of FY24. Zomato, which went public in 2021, currently maintains a market capitalization of approximately $20.7 billion.
Swiggy’s IPO Roadmap
Swiggy’s gearing up for its IPO amidst a more hopeful market vibe after a tough funding spell. It’s not alone—other startups are also eyeing public offerings, signaling growing investor excitement.
While Zomato’s recent success might encourage optimism, Swiggy faces challenges, especially with its Instamart falling behind Blinkit. Blinkit has played a huge role in Zomato’s increasing revenue. Unlike Zomato, Swiggy is still grappling with losses, suggesting that immediate profits post-IPO are uncertain. The $12 billion valuation may be optimistic, and it might take until FY26 to get a clearer picture of Swiggy’s true value.
