Swiggy, the online food delivery platform, is gearing up for a substantial Initial Public Offering (IPO), with plans to raise around $1 billion later this year, according to co-founder and CEO Sriharsha Majety. The company has been making significant preparations for the IPO, including adding independent directors to the board.
For its IPO process, Swiggy is reportedly working with seven investment banks, including Kotak Mahindra Capital, Citi, JPMorgan, Bofa Securities, Jefferies, and others. The move comes after Swiggy's competitor, Zomato, went public in 2021.
Majety mentioned that Zomato's listing has provided valuable insights for Swiggy, offering a better understanding of how retail investors perceive the food delivery market. Learning from Zomato's experience, Majety highlighted the importance of managing communication, guidance, and the increased scrutiny that comes with being a public company.
Swiggy's investor, Prosus, reported in its financial filing that Swiggy's core food-delivery business achieved a 17% growth, delivering a gross merchandise value (GMV) of $1.43 billion in the first half of FY24. This growth was attributed to an increase in transacting users, leading to double-digit order growth and inflation in the average order value (AOV).
(With Agency Inputs)
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