Indian food delivery giant Swiggy is deliberating hiking the fresh issue component of its initial public offering by $150 million, with plans to potentially raise as much as $1.4 billion in what could be one of India's largest stock market debuts this year.
Reliable sources familiar with the matter have stated that Swiggy is considering getting approval from shareholders to boost the amount collected through fresh stock issuance by up to 50 billion Indian Rupees or around $600 million, an increase from the previously planned $450 million figure.
Valued at $10.7 billion after its last funding round in early 2022, Swiggy is reported to be targeting a valuation of approximately $15 billion for its public listing. It has scheduled a shareholder meeting for October 3rd to obtain consent on the revised IPO plans, including the enlarged fresh issue and offer for sale by existing investors.
Backed by prominent investors like Prosus Ventures, SoftBank and Accel, Swiggy leads the food delivery and emerging quick commerce sectors in India. It posted revenue of $1.4 billion for the fiscal year that ended in March 2024, while its fledgling Instamart service was on track for $1 billion in annual sales.
However, Swiggy faces intense competition from rivals like Zomato, BigBasket and Zepto that are aggressively expanding. Bank of America analysts recently warned of increased competition over the next 12-18 months as top platforms further diversify offerings.
