Swiggy has cut the valuation target for the company for its upcoming IPO to $12.5 Bn to $13.5 Bn
The company was initially said to be eyeing a valuation of $15 Bn but decided to cut it due to market volatility and the ongoing correction in the Indian equities market
Swiggy is targeting a listing on the bourses on November 13 and its public issue will open in the preceding week
Foodtech major Swiggy
has reportedly cut the valuation target for its upcoming initial public offering (IPO) to $12.5 Bn to $13.5 Bn.
Swiggy was initially said to be eyeing a valuation of $15 Bn but decided to cut the valuation for its $1.4 Bn IPO due to market volatility and the ongoing correction in the Indian equities market, Reuters reported citing sources.
The company wants to make sure that “a lot of value is left on the table” for investors who bid for the public issue, one of the sources was cited as saying.
The valuation of Swiggy’s listed rival Zomato stood at around $26.7 Bn at the end of the trading session on Thursday (October 24).
The report said that Swiggy is targeting a listing on the bourses on November 13 and its public issue will open in the preceding week.
Inc42 has reached out to Swiggy for a comment on the development. The story will be updated on receiving a response.
Earlier this month, Swiggy received the approval from its shareholders to increase the size of the fresh issue in its public issue to INR 5,000 Cr from INR 3,750 Cr earlier. The IPO will have an offer-for-sale component of up to 18.53 Cr shares.
As per Swiggy’s DRHP, its consolidated net loss widened over 8% to INR 611 Cr in the June quarter (Q1 FY25) from INR 564.08 Cr in the year-ago period owing to a surge in operating costs.
Recently, the Bengaluru-based company increased its platform fee to INR 10 from INR 7 per order on its food delivery service, marking a 43% rise.
Ahead of the IPOthe foodtech major has been on a spree of new launches to increase its user base and revenue. Earlier this month, Swiggy launched Swiggy Bolta service to deliver quick-to-prepare dishes in 10 minutes. It started operations in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune.
Besides, it is also piloting a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public. The offering, Rare Club was rolled out for consumers prepared to pay a yearly membership fee, starting from INR 50,000.
It also launched a bulk order service called ‘Swiggy XL EV’ fleet in Gurugramdesigned to serve large groups.
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