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Swiggy India IPO will be one of country's biggest so far

in 2024

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Swiggy competes in quick commerce, food delivery

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Firm eyes IPO fund raise for adding more

warehouses-sources

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By Aditya Kalra

NEW DELHI, Aug 23 (Reuters) - SoftBank-backed Indian

food delivery giant Swiggy is targeting a valuation of around

$15 billion for its upcoming stock market offering to raise

$1-1.2 billion, three people familiar with the matter said.

The deal would make it one of biggest Indian initial public

offerings this year.

Swiggy competes with Zomato in India's online

restaurant and cafe food deliveries sector, and both have made

major bets on the new so-called quick commerce boom where

groceries and other products are being delivered in 10 minutes.

Swiggy received a shareholder approval in April for an IPO

that would raise up to $1.25 billion and its confidential filing

is expected to be cleared by the Indian markets regulator within

a month or so. Following the approval it will file a public

prospectus, according to the people, who declined to be named as

the matter is private.

The company is targeting a valuation of around $15 billion

though the final figure can change, they said.

Swiggy said in response to a Reuters query that it could not

comment on "any market speculation".

Its last funding round, led by Invesco in 2022, valued it at

$10.7 billion.

One of the sources said Swiggy aimed to use IPO proceeds to

expand its quick commerce Instamart business and open more

warehouses to better compete with Zomato.

Zomato's shares have more than doubled since listing in 2021

and it has a market valuation of around $28 billion.

Goldman Sachs ( GS ) said in April quick deliveries accounted for

$5 billion, or 45%, of India's $11 billion online grocery market

and forecast the segment to reach a 70% share of that market by

2030.

Reuters in June reported that Swiggy was increasingly

focusing on its Instamart business.

Swiggy's food delivery business is profitable but grocery

delivery Instamart business is still loss making, sources say.

The company has around 550 grocery warehouses in 35 Indian

cities.