Swiggy, which delivers food from restaurants and also groceries, was valued at $10.7 billion in its last fundraising in 2022 but like many Indian startups put its IPO plans on hold amid a funding crunch and investor concerns about stretched valuations.
But as global and Indian markets have rebounded, Swiggy has restarted its IPO planning by inviting eight investment banks to make pitches in early September to work on the IPO, including Morgan Stanley, JP Morgan and Bank of America, two of the sources said.
Swiggy is using the last funding round valuation of $10.7 billion as a benchmark for IPO planning, said one of the sources, who is directly involved in the planning process. But this source said the company has yet to decide on a potential stake sale or final valuation.
Invesco, a minor shareholder in Swiggy, in May valued the Indian company at around $5.5 billion, it said in a filing.
Swiggy had initially considered raising $800 million to $1 billion via the IPO, banking sources who worked on it in early 2022 have said.
Swiggy, JP Morgan and Morgan Stanley did not respond to requests for comment, while Bank of America declined to comment. The three sources said Swiggy is aiming to list between July-September 2024 which would be after national elections in India due by May.
Swiggy rival Zomato‘s shares have risen 54.8% so far this year, in a sign that investor confidence is returning to India’s financial markets.
On Friday, Indian grocery startup Zepto said it has raised $200 million in fresh funding at a valuation of $1.4 billion, making it the first Indian startup to cross the billion-dollar valuation mark in nearly a year.
Swiggy in May said its core food delivery business had turned profitable, nine years after starting operations, even as its newer grocery delivery service, Instamart, continues to make losses.
(Reporting by M. Sriram; Editing by Aditya Kalra and Jane Merriman)