Swiggy- Food Delivery Company Prepares to Launch an Estimated $1 Billion IPO

Swiggy, a food delivery company backed by some of the best investors in the world, including Naspers, DST Global, Softbank, and Tencent, is now gearing up for a $1 billion IPO that will probably be launched in the market by the end of FY23. Swiggy has hired the investment banking goliaths ICICI security and JP Morgan for the IPO launch, and sources have added that more banks, including merchant banks, are going to be joined soon.

Even as the pandemic had hit the food delivery giant hard in the year 2020 and 2021 subsequently.

Swiggy doubled its food and grocery delivery amid COVID-19 and it today stands at a valuation of $10.7 billion and has become a top player in the Indian market by becoming the fourth decacorn, joining the league of big names like Oyo and Paytm. Swiggy has managed to raise about $ 700 million that has doubled its valuation within six months.

Invesco, an American independent investment company, had led the round of $700 million along with the participation of new investors like Baron Capital Group, Kotak, and many others. Additionally, from existing investors like Softbank, Accel, and Prosus, Swiggy has managed to raise about $1.25 billion during the peak of the second wave of COVID-19 in India.

In January this year, the GOV (gross order value) of its food delivery startup had nearly doubled. Instamart, Swiggy's online grocery delivery platform, has also seen substantial growth as it's going to reach an annual GMV run rate of $1 billion in the upcoming three quarters.

Recently, there have been talks about Swiggy acquiring the well-known restaurant reservation app, DineOut. The deal is expected to be closed at around $150 million to $200 million. Earlier this year, Sriharsha Majety, co-founder and chief executive of Swiggy had stated "We will continue to invest in our people, products, and partners to create a positive impact on the ecosystem and accelerate the digital transformation in food and grocery delivery and other on-demand services", making it clear that Swiggy has unstoppable plans for growth.