Swiggy’s IPO Plan Is Back On Track With 2024 Timeline, In Talks With 8 Investment Banks: Reports – News18

Swiggy, the popular food delivery app, has its IPO on course for 2024, inviting investment banks to assess its valuation. The Softbank-backed firm halted the process for months due to weak markets, sources informed Reuters. Swiggy, which delivers food from restaurants as well as groceries, was valued at $10.7 billion in the last fundraising in 2022. Just like other startups, the company put its IPO planning on hold due to funding crunch and investor concerns about stretched valuations. According to the news agency, sources shared that Swiggy has invited eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America.

One of the sources who is directly involved in IPO planning shared that Swiggy is using its last funding round valuation from the previous fundraised as a benchmark. The company has yet to decide on a potential stake sale or final valuation.

In May, a minor shareholder in Swiggy, Invesco said in a filing that the value of the company is at around $5.5 billion. A banking source also revealed that Swiggy had initially considered raising $800 million to $1 billion, through the IPO in 2022.

The three sources also said that Swiggy is aiming to list between July and September 2024, which would be after General Elections 2024, which is supposed to be held in May.

Till now, Swiggy’s competitor Zomato’s shares have increased 54.8 per cent, which is also a sign of regaining the investors’ confidence in India’s financial markets.

On Friday, grocery startup Zepto announced that it has raised $200 million in fresh funding at a valuation of $1.4 billion, making it the first Indian startup to cross the billion-dollar valuation mark in nearly a year.

Swiggy, in May, revealed that its core food delivery business had turned profitable after nine years of operations. Its new grocery delivery service, Instamart, continues to witness loss.