India’s food delivery giant Swiggy has hired bankers to prepare for an initial public offering next year, a source familiar with the matter said.
Start up, that’s $10.7 billion in Series CZK funding The source said in January this year, that it is looking to raise up to $1 billion in an IPO, which is expected to file as early as the first half of next year, and requested anonymity because of discussions. Discussion is ongoing and details are private.
The source warned that the timing of Swiggy’s IPO and the amount of money the company wants to raise from the public market could change depending on market conditions and other factors, the source warned, adding that The startup will raise at least one more large round of funding before the IPO.
The startup – which includes Prosus Ventures, Accel and SoftBank among backers – has hired JP Morgan and ICICI Securities in recent weeks to run the books for the IPO, the source said. . The startup is likely to add a few more investment banks in the coming months.
The fact that Swiggy – Zomato’s main rival, went public last year – Has obviously been eyeing an IPO for a while. It has told a number of investors in recent quarters that it is preparing for an IPO. Several late-stage and pre-IPO investors such as Invesco, IIFL Late Stage Fund AMC and Axis Growth have invested in the startup’s most recent funding round.
Swiggy is also working to improve its finances and by the quarter ended September last year, it had fully recovered from the damage caused by the pandemic. It is also set to make some major acquisitions and investments. The startup is in talks to acquire restaurant booking app Dineout, according to a person familiar with the matter. (Indian News Inc42 first report about conversations.)
“Since the start of the fiscal year, Swiggy has focused on recovery by reactivating users, increasing monthly frequency, and converting users back to pre-Covid-19 levels. This strategy paid off as Swiggy reactivated 128,000 restaurants on the platform (100% at pre-Covid-19 levels), achieving 1.59 million orders per day and GMV of $984 million, up 69 % over the same period,” said Prosus Ventures in its financial report in November.
“This growth reflects higher average order value compared to pre-pandemic levels and higher revenue from delivery fees and ad sales.”
Swiggy said in January that it has nearly doubled the total order value of its food delivery business, and that Instamart, the instant delivery service, is on track to hit an annual GMV of $1 billion in the past year. next three quarters.
“Our goal is to make Swiggy a platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products and partners to make a positive impact on the ecosystem and accelerate digital transformation in food and grocery delivery and other on-demand services,” said Sriharsha Majety, co-founder and chief executive officer of Swiggy in January.
Analysts at Bernstein wrote in a report to clients last year.