Indian food delivery giant Swiggy has hired bankers as it prepares for an IPO next year, a source familiar with the matter said.
The startup, which was valued at $10.7 billion in its Series K funding in January this year, is looking to raise up to $1 billion in the IPO, which it plans to file as soon as possible. the first half of next year, the source said, requesting anonymity as deliberations are ongoing and details are private.
Swiggy’s IPO timeline and the amount of money it wants to raise in the public market are subject to change depending on market conditions and other factors, the source warned, adding that the startup would raise at least one more major funding round ahead of the IPO. .
The startup – which counts Prosus Ventures, Accel and SoftBank among its backers – has hired JP Morgan and ICICI Securities in recent weeks to manage its books for the IPO, the source said. The startup is expected to add a few more investment banks in the coming months.
That Swiggy – whose main rival, Zomato, went public last year – is considering an IPO has been evident for some time. He has told several investors in recent quarters that he is preparing for an IPO. Several late-stage and pre-IPO investors such as Invesco, IIFL AMC Late Stage Fund and Axis Growth have invested in the startup’s latest funding round.
Swiggy has also been working to improve its finances and in the quarter that ended September last year it had fully recovered from the losses from the pandemic. It is also preparing to make major acquisitions and investments. The startup is in talks to acquire restaurant reservation app Dineout, according to a person familiar with the matter. (Indian news outlet Inc42 first reported on the talks.)
“Since the start of the fiscal year, Swiggy has focused on recovery by reactivating users, increasing monthly frequency and returning user conversion to pre-Covid-19 levels. This strategy paid off as Swiggy reactivated 128,000 restaurants on the platform (100% of pre-Covid-19 levels), achieved 1.59 million orders per day and GMV of $984 million, up 69 % over the comparable period,” Prosus Ventures explained in its financial report in November.
“This growth reflects higher average order values compared to pre-pandemic times and higher revenue from delivery charges and advertising sales.”
Swiggy said in January it had nearly doubled the gross order value of its food delivery business, and Instamart, its instant delivery service, was on track to hit an annual GMV operating rate of $1 billion. dollars over the next three quarters.
“Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products and partners to create a positive impact on the ecosystem and accelerate the digital transformation of food and grocery delivery and other on-demand services,” Sriharsha said. Majety, co-founder and CEO of Swiggy. said in January.
At stake is India’s foodservice market, which is expected to reach $97 billion by March 2026, Bernstein analysts wrote in a report to clients last year.