Swiggy, a local food-delivery company, may file its draft red herring prospectus (DRHP) with capital markets regulator Sebi this week in order to conduct its initial public offering (IPO), according to a report citing sources. The new-age online startup is expected to join the robust pipeline of listing candidates shortly.
Swiggy, located in Bengaluru, is expected to collect more than $1 billion from its first public offering. According to the sources, the diverse food business is awaiting clearance from India's Securities and Exchange Board of India (Sebi) before applying for an IPO.
However, the corporation may adjust the issue size, which is currently being discussed. Swiggy, which has stayed silent on the topic, competes with its arch competitor Zomato in the food delivery and rapid commerce market. However, both players have diverse business lines.
Swiggy, founded in 2014, collaborates with over 150,000 eateries throughout India to assist serve food in the world's most populated country, according to its website. Swiggy gained shareholder approval to pursue an IPO in April, with an expected worth of $15 billion.
Softbank-backed Swiggy generated Rs 5,476 crore in income from operations and had a Rs 1,600 crore loss in the first three quarters of the fiscal year FY24. Swiggy's nearest competitor, Zomato, is valued at roughly $27-28 billion at current prices. Swiggy's food delivery operation is profitable, but Instamart's grocery delivery division continues to lose money.
Additional postings are likely in the following months. Hyundai Motor Co. intends to sell shares in its local Indian company this year, which is believed to be the largest-ever listing in India. LG Electronics Inc. has chosen banks for a prospective IPO of its Indian company, which may raise up to $1.5 billion, according to media reports.
