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Swiggy, the popular Indian food-delivery platform, has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). This comes after Swiggy confidentially filed its draft share sale documents, as reported by Moneycontrol. The IPO is expected to launch in November, and Swiggy aims to raise more than $1 billion through the offering. The news marks a significant step for the company, which has been steadily growing its market share in the Indian food delivery sector.
Founded in 2014, Swiggy has partnered with over 150,000 restaurants across India, offering its services to a vast customer base in the world's most populous nation. The company's ambition for its IPO is reflected in its targeted valuation of around $15 billion. In April, Swiggy secured shareholder approval to initiate the IPO process. This significant move reflects the company's confidence in its future prospects and its desire to tap into the public markets to further fuel its growth.
Swiggy's financial performance reveals a company on a strong growth trajectory, though profitability remains a key focus. In the first three quarters of the current fiscal year (FY24), Swiggy reported Rs 5,476 crore in revenue from operations but also incurred a Rs 1,600 crore loss. Despite the losses, Swiggy's food delivery business is profitable. However, its grocery delivery arm, Instamart, is still operating at a loss. The IPO could provide Swiggy with the necessary capital to invest in its Instamart business and further optimize its operations for profitability.
Swiggy's upcoming IPO comes at a time when the Indian tech sector is experiencing a resurgence in investor interest. The company's nearest competitor, Zomato, is currently valued at around $27-28 billion. Swiggy's IPO could potentially reshape the landscape of the Indian food delivery market, offering investors a new opportunity to invest in a company that is rapidly expanding its reach and services. The successful execution of Swiggy's IPO would further solidify its position as a major player in the Indian tech scene and could pave the way for other promising startups in the sector to pursue public listings.
Source: Swiggy secures SEBI approval for IPO, launch expected in November: Report