Swiggy, the Bengaluru-based food delivery platform backed by SoftBank, is reportedly preparing to submit its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) this week. According to people with knowledge of the matter, the business hopes to raise over $1 billion with this offering.
The anticipated filing with India’s Securities and Exchange Board of India (SEBI) is a crucial step for Swiggy as it seeks regulatory approval to proceed with the IPO process. Details regarding the size and timing of the offering remain under discussion and could be subject to change.
Sources indicate that Swiggy is aiming for a valuation of approximately $15 billion. In April, the company received approval from its shareholders to pursue an IPO, which typically must be executed within a year following SEBI’s observations on the DRHP.
Founded in 2014, Swiggy operates in a competitive landscape, competing with publicly listed companies such as Zomato and e-commerce giants like Amazon and Tata Group’s BigBasket—Swiggy partners with over 150,000 restaurants across India, offering various food delivery services.
In the first three-quarters of FY2024 (April to December), Swiggy reported operational revenues of ₹5,476 crores, alongside a loss of ₹1,600 crores during the same period. While the company’s food delivery segment is reportedly profitable, its grocery delivery service, Instamart, has faced challenges, contributing to overall losses.
Once listed, Swiggy will join the ranks of other new-age internet companies, including Zomato, Mamaearth, Nykaa, and Paytm. By comparison, Zomato is currently valued at ₹239,234.88 crore, based on its latest trading price of ₹270.95 per share on the National Stock Exchange (NSE).
