Swiggy plans $150M boost for IPO, targeting $1.4B total

Swiggy, the Indian food delivery startup, is planning to enhance its initial public offering (IPO) by increasing the fresh issue component by $150 million, aiming for a total raise of up to $1.4 billion. This adjustment comes as the company seeks shareholder approval for a revised plan that includes raising up to ₹50 billion ($600 million) through new shares, up from the initial $450 million target. The shareholder meeting is scheduled for October 3, where these changes will be discussed. The startup, which was valued at $10.7 billion during its last funding round in early 2022, is targeting a valuation of approximately $15 billion for the IPO. Alongside the fresh issue, Swiggy plans to sell around $800 million worth of shares from existing investors. This move is part of a broader strategy to solidify its position in a competitive market, where it faces challenges from rivals like Zomato and BigBasket. In the financial year ending March 2024, Swiggy reported revenues of $1.4 billion, with its quick commerce service, Instamart, achieving a gross merchandise value run-rate of $1 billion. Analysts from Bank of America have noted that the quick-commerce sector is entering a phase of heightened competition, with major players expanding their offerings and market presence. As the IPO landscape in India is expected to see significant activity, with firms projected to raise around $11 billion in the latter half of the year, Swiggy's strategic moves are crucial for its growth and sustainability in a rapidly evolving industry.