Softbank-backed Indian Unicorn Swiggy Seeks IPO this Week 

Indian food delivery giant Swiggy, backed by SoftBank, is reportedly preparing to file for its initial public offering (IPO) as early as this week. According to sources familiar with the matter, the Bengaluru-based company is expected to raise over $1 billion through the IPO. 

Swiggy is currently awaiting approval from the Securities and Exchange Board of India (Sebi) to file its draft red herring prospectus (DRHP). Once approved, the company will officially begin the process of going public.

Swiggy’s IPO plans come amid ongoing discussions about the offering’s size and timing, with final details yet to be confirmed. While the company has remained silent on specifics, industry insiders suggest that Swiggy could target a valuation close to $15 billion. 

Competing directly with Zomato and other major players like Amazon India and Tata Group’s BigBasket, Swiggy has diversified its operations to include grocery delivery through its Instamart service, which is still working toward profitability.

Founded in 2014, Swiggy has become a major player in India’s food delivery market, partnering with over 150,000 restaurants across the country. Despite its expansion into various sectors, the company reported revenue of Rs 5,476 crore and a Rs 1,600 crore loss during the first three-quarters of FY24. 

While its food delivery arm has turned profitable, losses from the grocery business have impacted its overall financials. Nonetheless, Swiggy’s growth path has been supported by global investors, including SoftBank.

Swiggy’s IPO is set to capitalize on the booming investor interest in Indian startups, especially within the tech sector. In 2024 alone, about $7.8 billion has already been raised through initial share sales, surpassing totals from the previous two years. 

As Swiggy prepares to file its IPO, it joins a growing list of Indian startups tapping into public markets to fuel their expansion plans. The anticipated filing is expected to attract attention from investors eager to assess Swiggy’s financial health and future in the competitive and fast-growing Indian food delivery industry.

More major listings are anticipated in the coming months as the Indian market continues to draw interest. Hyundai Motor Co. plans to list its Indian unit later this year, potentially marking one of the largest listings in the country’s history. Additionally, LG Electronics has reportedly selected banks for a possible IPO of its Indian division, which could raise as much as $1.5 billion, further boosting the Indian stock market’s activity.

As the food-delivery giant awaits regulatory approval, the market will closely watch this development, which could mark a crucial moment in Swiggy’s growth and India’s rapidly evolving digital economy. Investors are particularly keen to see how the company plans to navigate its public offering and its strategic directions afterward.

Reports have indicated that Swiggy, backed by SoftBank, may aim for a valuation of around $15 billion, seeking to raise between $1 billion and $1.2 billion from its stock market debut. 

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