Swiggy, one of India’s largest food delivery platforms, has officially filed its draft red herring prospectus (DRHP) with SEBI (Securities and Exchange Board of India) for its much-anticipated Initial Public Offering (IPO). The IPO will include a fresh issue of shares worth ₹3,750 crore, along with an Offer for Sale (OFS) of 18.53 crore shares. The OFS proceeds will go to the existing investors who are selling their stakes.
This IPO has been eagerly awaited by the market, as it follows several years of rapid growth in Swiggy’s business, which started in 2014. Currently, Swiggy partners with over 150,000 restaurants across India and operates in both the food delivery and quick commerce spaces, the latter through its Instamart service.
Tough Competition in Food Delivery and Quick Commerce
Swiggy’s main competitor in the food delivery space is Zomato, which has been performing strongly since its IPO in 2021. Instamart, Swiggy’s quick commerce arm, competes with Zomato’s Blinkit and Zepto in the grocery delivery market, along with other players like Amazon, Tata Group’s BigBasket, and Flipkart. The competition in quick commerce is intensifying as demand for fast grocery delivery grows in India.
Big Names Among Swiggy’s Investors
Swiggy has attracted high-profile investors ahead of its IPO. Reports suggest that notable personalities such as cricketers Rahul Dravid and Zaheer Khan, tennis player Rohan Bopanna, filmmaker Karan Johar, and actor-entrepreneur Ashish Chowdhry have purchased Swiggy shares in the unlisted market. Bollywood stars Amitabh Bachchan and Madhuri Dixit Nene also invested in earlier funding rounds, along with Innov8 founder Ritesh Malik.
Strong Global Backing and IPO Details
Swiggy has received strong backing from global venture capitalists, including SoftBank Vision Fund, Accel, and Prosus. The Bengaluru-based startup is reportedly targeting a valuation of $15 billion through the IPO, which would make it one of the largest IPOs in the Indian tech space. In its last funding round in 2022, Swiggy was valued at $10.7 billion.
Swiggy’s IPO comes at a time when its rival Zomato is riding high after its successful listing. Together, Swiggy and Zomato dominate over 90% of India’s food delivery market, which is projected to grow to ₹2 lakh crore by 2030.
With strong market demand and big-name investors involved, Swiggy’s IPO is poised to be a major event in India’s startup and food tech industries.
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