Swiggy, the leading food delivery conglomerate, is reportedly aiming for an initial public offering (IPO) of $800 million in the following year and has started preparing for the same.
The announcement comes after the rival firm, Zomato, made its debut in the market the previous year. It also observed its shares decline below the issue price.
Apparently, Zomato has a market capitalization of around $9 billion, which was $5.4 billion prior to the IPO. The company reportedly tepid order value increase during the third quarter.
As per credible sources, SoftBank Group-supported Swiggy has started including independent directors to their board as the food delivery app plans to place itself as a logistics firm.
Swiggy has become a decacorn (term used for startups valued at more than $10 billion) by raising a funding of $700 million in a funding tranche led by Invesco, in which its value doubled to $10.7 billion, outstanding its competitor Zomato.
In the middle of a boom in the requirement for grocery and food delivery, particularly during the COVID-19 pandemic, Swiggy, followed by its recent funding round, declared that the gross order value of the company’s main food-delivery business nearly doubled in the previous year.
Swiggy stated that the recent funding will help increase the growth of the app’s food delivery platform along with making investments in Instamart. Swiggy also mentioned that it plans to invest $700 million in Instamart, which has laid its roots in 19 cities in the past months.
According to reports, Instamart is now in competition with Zepto and Blinkit, which are luring customers with the promise of delivery within 10 minutes.
For the record, the shares of the Indian startups including Zomato, Paytm, Nykaa and Policybazaar, which were gaining fanfare previous year, have been facing new losses every day.
Swiggy reported a 23 per cent decline in year-on-year revenue at Rs.2,145 crore in the FY 2020-21.