Once-dominant Swiggy seeks $11.3B value at IPO, less than half Zomato’s worth

Fundings and Exits

Swiggy, one of India’s largest food delivery and quick commerce startups, is seeking a valuation of up to $11.3 billion in its initial public offering, marking a 57% discount to rival Zomato’s market cap.

The lossmaking Bengaluru-based company has set an IPO price band of ₹371 to ₹390 ($4.41-$4.64) per share for next month’s IPO. At the upper end, the valuation would represent only a modest premium to its $10.7 billion private market value from early 2022 — falling short of recent valuations by mutual fund investors Invesco and Baron.

Swiggy aims to raise $1.34 billion, with $535 million from fresh share issuance and the remainder through existing investor exits. Swiggy, which led India’s food delivery market four years ago and pioneered quick commerce, has since lost significant market share in both segments. In quick commerce, it now ranks third behind Zomato’s BlinkIt and Nexus-backed Zepto.

Zomato, which recently announced plans to raise up to $1 billion through a qualified institutional placement, currently commands a market cap of $26.2 billion.

Products You May Like

Articles You May Like

YC-backed Formal brings a clever security reverse-proxy out of stealth
Spotify teases a ‘super premium’ tier for superfans and upcoming video expansion in Q3 earnings call
TikTok parent ByteDance reportedly values itself at $300 billion
SuperAnnotate helps companies manage their AI data sets
Itching to write a book? AI publisher Spines wants to make a deal

Leave a Reply

Your email address will not be published. Required fields are marked *