Swiggy, the Softbank-backed food delivery company, is planning to launch a 2024 stock market listing and has enlisted bankers to assess its valuation after halting the process for months due to weak markets. The Bengaluru startup, which was last valued at $10.7 billion after it raised $700 million has reportedly invited eight investment banks, including Morgan Stanley, JP Morgan, and Bank of America, to make pitches in early September to work on the IPO.
The company is using the last funding round valuation of $10.7 billion as a benchmark for IPO planning, said a source to Reuters, who is directly involved in the planning process. But this source said the company is 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, it said in a filing. The food startup had initially considered raising $800 million to $1 billion 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.
Sources mention Swiggy aims to list between July-September 2024, post-India’s May elections. Zomato, Swiggy’s rival, saw a 54.8% rise in shares this year, signaling renewed investor confidence.
On Friday, Zepto, an Indian startup specializing in grocery delivery, successfully secured a fresh infusion of funds totaling $200 million. This funding was secured at a valuation of $1.4 billion, signifying a milestone as the first Indian startup to surpass the billion-dollar valuation threshold in almost a year. In contrast, Swiggy announced in May that its core food delivery segment had achieved profitability after nine years of operation. However, Swiggy’s newer venture, the grocery delivery service Instamart, continues to report losses.