After crossing $10 billion valuation last month, Indian food delivery company Swiggy has started preparations to raise at least $800 million in an IPO early next year, the Nikkei? Asia?reported yesterday, citing people familiar with the matter.
It has been reported that Swiggy has begun adding independent directors to the board, and it plans to position itself as a logistics company and not just a food delivery firm.
SoftBank Group backed Swiggy has already doubled its valuation to $10.7 billion in its latest funding round of $700 million that made it a decacorn last month.
Upon turning a decacorn in last week of January 2022, the term used companies valued at $10 billion or more, Swiggy CEO and co-founder Sriharsha Majety had said, ¡°The GMV of our food-delivery business achieved in 40 months took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories.¡±?
He had further stated that ¡° Our goal is to make Swiggy the platform that 100 million consumers can use 15 times a month. We will continue to invest in our people, products, and partners.¡±?
Swiggy¡¯s rival Zomato had seen a stellar stock market debut last year in July 2021, as its stock opened at over 50% premium on both NSE and BSE. But the road's not been easy since then.?
After the debut boom, Zomato's stock price has been on a rollercoaster and it has struggled to keep the momentum going.?
After enjoying the all-time high price of?? 169.10 on November 16, 2021, the stock is at present trading around 50% lower than the peak, hovering around the ?80 mark, which is just slightly higher than its issue price.?
And that's not all. Last week, on 15th February 2022, Zomato's stock price crashed to an all-time low of ?75.75 on BSE, implying the stock price slipped below its issue price of ?76 for the first time.
Zomato's performance has been a signal that even though India has been witnessing a booming demand for delivery of food and grocery, especially during the pandemic, going public and being able to live up to the expectations of investors is a totally different ballgame.?
Now it remains to be seen how Swiggy plans out its IPO and how it performs vis-a-vis its rival Zomato.
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