Swiggy, a popular food delivery and quick commerce startup in India, is planning to go public with an IPO valuation of $11.3 billion. This valuation is actually 57% lower than its competitor Zomato’s market cap. Despite being a loss-making company based in Bengaluru, Swiggy is confident in its IPO pricing, setting a price band of ?371 to ?390 per share.
The company aims to raise $1.34 billion through this IPO, with a significant portion coming from fresh share issuance. Swiggy has seen a decline in its market share over the years, especially in the quick commerce segment where it now ranks third behind Zomato’s BlinkIt and Zepto. Zomato, on the other hand, is looking to raise $1 billion through a qualified institutional placement and currently boasts a market cap of $26.2 billion.
It’s interesting to see the contrasting fortunes of these two major players in the Indian food delivery space. While Swiggy was once a market leader, it has faced challenges in maintaining its position against competitors like Zomato. The IPO will be a crucial moment for Swiggy as it looks to raise funds for future growth and expansion.
Investors will be closely watching how the market responds to Swiggy’s IPO, especially given the lower valuation compared to Zomato. The success of the IPO will depend on factors like investor appetite, market conditions, and Swiggy’s ability to showcase its growth potential despite recent market share losses.
Overall, the food delivery and quick commerce space in India is highly competitive and dynamic, with companies constantly innovating and adapting to changing consumer preferences. Swiggy’s IPO will be a key event to watch in the coming months as it navigates the challenges and opportunities in the market.
