INDIA– Food delivery platform Swiggy is preparing to file its initial public offering (IPO) this week, according to a Bloomberg report.
Bloomberg reported insiders privy to the information, the delivery platform is striving to raise over US$1 billion from the IPO.
The Bengaluru-based company is reportedly waiting for approval from India’s Securities and Exchange Board (SEBI).
However, the exact details of the timing and size of the IPO have not been made public.
The filing is a reflection of the company’s growth over the years and the potential of the food delivery sector.
According to a July report by Goldman Sachs, Swiggy saw a 26% year-on-year (YoY) increase in gross order value (GOV) in the 2023/2024 financial year. Zomato, Swiggy’s largest competitor, saw a 22% YoY increase in GOV within the same period.
Market analysis firm IMARC Group also reports India’s food delivery market is expected to generate US$43.78 billion in revenue in 2024 and is expected to grow at a combined annual growth rate (CAGR) of 15.98% between 2024 and 2029.
Founded in 2014, Swiggy has partnered with more than 150,000 restaurants across India and is the second largest online delivery platform in India, second only to Zomato.
The company competes with other major food delivery platforms like Amazon’s India division and Tata’s Big Basket.
Backed by SoftBank Group Corp., the IPO would follow in the footsteps of other local and international players in the food delivery sector, seeking to tap into the sector’s potential.
The food delivery platform has also diversified its portfolio through its Instamart service, which specializes in groceries. According to Swiggy, the need to diversify stems from changing consumer dynamics, who increasingly prefer the convenience of online solutions.
The reported decision to go public also aligns with India’s economic growth and its digital adaptation. The country’s rapid economic growth has created a pool of potential investors seeking to put their money in promising businesses like Swiggy.
The digital revolution experienced post-COVID-19 has also significantly contributed to the increased demand for online delivery services.
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