Swiggy eyes $800 million public listing early next yr
BENGALURU: Indian food delivery company Swiggy, which is backed by SoftBank Group, has started preparations to raise at least $800 million in an IPO early next year, the Nikkei reported on Tuesday, citing people familiar with the matter.
Swiggy has begun adding independent directors to the board, and plans to position itself as a logistics company and not just a food delivery firm, according to the report.
The company did not immediately respond to a Reuters request for comment.
Swiggy doubled its valuation to $10.7 billion in its latest funding round, Reuters reported last month, citing sources.
Rival Zomato Ltd, which saw a stellar market debut last year has struggled to keep the momentum going. It reported tepid order value growth in the third quarter.
India has seen booming demand for delivery of food and grocery, especially during the pandemic.
Swiggy’s grocery delivery service Instamart is now competing with the likes of Blinkit and Zepto, which are luring customers with the promise of 10 minute-deliveries.
Swiggy reported a 27% decline in its 2020-21 (FY21) operating revenue as lockdowns imposed to contain the spread of coronavirus hit demand for online food delivery during the period. It reported consolidated operating revenues of ₹2,547 crore for FY21, against ₹3,468 crore in FY2. The company recently turned a decacorn, which are privately-held firms that have a valuation of $10 billion or more.
The company’s consolidated total income, too, was down 28% to ₹2,676 crore. However, a sharp decline in cost of materials coupled with a fall in employee benefit costs and other expenses, led to a near 46% drop in consolidated total expenses.