Swiggy is planning to go for public this year, as per a report by Entrackr, which added that the food delivery platform will file papers for its IPO by May and ultimately list around the festive season. Swiggy will seek valuation in the range of $12-15 billion, the report said quoting sources.
The foodtech and quick commerce platform is exploring a secondary market deal as it wants to offer exits to its early as well as late-stage backers, as per the report.
“Swiggy is likely to go for an IPO in the second half of this year and the secondary transaction appears to be an attempt to spruce up its cap table,” a source told Entrackr. Swiggy will be seeking its last primary valuation in the potential secondary transaction, it added.
In the beginning of March, Baron Capital, a US-based fund manager, revised the value of its stake in Swiggy to $87.2 million, indicating a valuation of $12.16 billion for the hyperlocal commerce unicorn as it gears up for its upcoming IPO.
Earlier this year, Invesco, a US-based asset management company (AMC), too increased Swiggy's valuation to $8.3 billion. In October 2023, Invesco had marked up the foodtech platform’s valuation by about 42% to about $7.85 billion.
Now ahead of the potential run to Dalal Street, Swiggy is trying to improve its unit economics. The Entrackr report said that the company seems to be achieving a steady 25-30% year-on-year growth in FY24.
During the first nine months of FY24, Swiggy’s revenue from operations was ₹5,476 crore, according to a document drafted by an investment banker on behalf of Swiggy, which was seen by Entrackr.
The decacorn reported ₹8,265 crore in revenue in FY23 and a collection of ₹6,623 crore in the last fiscal year. The food delivery business constituted 82.65% of the total operating revenue, amounting to ₹4,526 crore. The remaining income came from Swiggy Instamart, the firm’s quick commerce vertical, the document showed.
The company’s key focus is on turning profitable and for that it has improved its EBITDA margins which registered at -1.9% and -109.5% for the food delivery biz and Instamart, respectively during the nine-month period, compared to -17.5% and -259% in FY23, as per the report.
