Swiggy, one of India’s prominent food delivery platforms, is reportedly set to launch its initial public offering (IPO) in early November, with subscriptions expected to open on November 6. The company aims to raise approximately ₹11,300 crore, making it the second-largest IPO in India this year. In response to market fluctuations, Swiggy has scaled down its valuation by 25% from its initial goal of $15 billion, a decision influenced by recent volatility and Hyundai India’s underwhelming IPO performance.
Senior Fundamental Analyst Atish Matlawala of SSJ Finance & Securities commented on Swiggy’s strategy, noting that Swiggy may follow Zomato’s post-IPO approach of focusing on profitability, which has proven beneficial. The proceeds from the IPO are expected to back Swiggy’s technology enhancements, cloud infrastructure, brand marketing, and business expansion efforts over the next four to five years.
Swiggy’s IPO is anticipated to attract major global investors, including BlackRock and the Canada Pension Plan Investment Board (CPPIB). Additionally, Swiggy has been making significant investments in “quick commerce,” providing ultra-fast delivery of groceries and essentials within minutes, which sets it apart in the competitive landscape against rival Zomato. Analysts predict that after the IPO, Swiggy will likely target EBITDA profitability by reducing promotional expenses, helping the company move toward a more sustainable growth model amid an increasingly challenging market environment.
