Swiggy weighs increasing IPO size by $150M, aiming to raise up to $1.4B

Indian food delivery startup Swiggy is considering increasing the fresh issue component of its initial public offering by $150 million, aiming to raise a total of up to $1.4 billion in what is shaping up to be one of the largest public listings in India this year.

The Bengaluru-headquartered startup will ask shareholders to approve raising up to ₹50 billion ($600 million) through a fresh issue of shares, up from the previously planned $450 million, according to a 15-page notice for a meeting with shareholders that was filed late last week.

Swiggy, valued at $10.7 billion in its last fundraise in early 2022, is considering going ahead with its plan to sell about $800 million worth of shares from existing investors in the IPO, people familiar with the matter told TechCrunch. The startup is seeking a valuation of about $15 billion in the IPO, the people said.

Swiggy has scheduled the shareholder meeting for October 3 to obtain consent for its revised IPO plans, which include both the enlarged fresh issue and an offer for sale by existing shareholders. Indian news outlet Entrackr first reported the notice.

With investors like Prosus Ventures, SoftBank and Accel among its backers, Swiggy is among the leading food-delivery and quick-commerce startups in India. It reported revenue of $1.4 billion in the financial year ended March 2024. Its quick commerce service, Instamart, was seeing annual run-rate gross merchandise value of $1 billion, the company said at the time.

The startup faces stiff competition from Zomato, Tata-owned BigBasket, and General Catalyst-backed Zepto. “We see quick-commerce industry going through a phase of increased competition in the next 6-12 months,” Bank of America analysts wrote in a note to investors late last month.

“Top 3 platforms are entering into each other’s turf. In last 6-12 months, we have seen the top 3 peers increase assortment, lease bigger dark stores and hence cater to higher demand (partly by moving part of e-com market to quick com). As users are not price sensitive and already have wider assortment options, it’s not easy even for these top 3 to gain traction in other’s stronghold,” the note read.

Bank of America analysts said last month that Indian firms are poised to raise about $11 billion via IPOs and FPOs in the second half of this year.