According to some sources, Swiggy, the food delivery company, backed by Softbank, is targeting a 2024 stock market listing and has initiated talks for assessing its valuation with bankers after halting the process for months because of weak markets.
In 2022, in its last fundraising, Swiggy was valued at $10.7 billion but it put its IPO plans on hold amid a funding crunch and investor concerns about stretched valuations.
As per sources, as global and Indian markets recovered, Swiggy restarted its IPO plans, inviting bids from eight investment banks, including Morgan Stanley, JP Morgan and Bank of America, for making pitches in early September.
One of the sources directly involved in the planning said that Swiggy is using the latest valuation of the $10.7 billion funding round as a reference for planning the IPO. But the company has not yet decided on a potential sale or final valuation.
In a filing, it said that in May, Invesco, a minor shareholder in Swiggy, valued the Indian company at around $5.5 billion.
As said by banking sources in early 20, Swiggy initially considered raising $800 million to $1 billion via the IPO.
As per the sources, Swiggy aims to be listed between July and September 2024, which is after India’s national elections in May..
This year, Zomato, Swiggy’s rival’s shares have increased 54.8% so far, indicating that investor’s confidence is returning to India’s financial markets.
In May, Swiggy said that its core food delivery business had turned beneficial after nine years of starting operations even if Instamart, its newer grocery delivery service, continues to make losses.