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Swiggy, the Softbank-backed food delivery company, is eyeing a 2024 stock market listing and has initiated talks with bankers to assess its valuation, after halting the process for months due to weak markets, three sources with direct knowledge of the matter said.
Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion (nearly Rs. 88,350 crore) in its last fundraising in 2022 but like many Indian startups put its IPO plans on hold amid a funding crunch and investor concerns about stretched valuations.
But as global and Indian markets have rebounded Swiggy has restarted its IPO planning by inviting eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America, two of the sources said.
Swiggy is using the last funding round valuation of $10.7 billion as a benchmark for IPO planning, said one of the sources, who is directly involved in the planning process.
But this source said the company has yet to decide on a potential stake sale or final valuation.
Invesco, a minor shareholder in Swiggy, in May valued the Indian company at around $5.5 billion (nearly Rs. 45,400 crore), it said in a filing.
Swiggy had initially considered raising $800 million (nearly Rs. 6,600 crore) to $1 billion (nearly Rs. 8,260 crore) via the IPO, banking sources who worked on it in early 2022 have said.
Swiggy, JP Morgan and Morgan Stanley did not respond to requests for comment, while Bank of America declined to comment.
On Friday, Indian grocery startup Zepto said it has raised $200 million (nearly Rs. 1,650 crore) in fresh funding at a valuation of $1.4 billion (nearly Rs. 11,560 crore), making it the first Indian startup to cross the billion-dollar valuation mark in nearly a year.
Swiggy in May said its core food delivery business had turned profitable, nine years after starting operations, even as its newer grocery delivery service, Instamart, continues to make losses.