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Swiggy, one of India’s largest food delivery and commerce startups, is seeking a valuation of up to $11.3 billion in its initial public offering, representing a 57% discount to rival Zomato’s market cap.
The loss-making Bengaluru-based company has set an IPO price band of Rs 371 to Rs 390 ($4.41-$4.64) per share for its IPO next month. At the high end, the valuation would represent just a modest premium to its private market capitalization of $10.7 billion as of early 2022 — lower than recent valuations by mutual fund investors Invesco and Barron’s.
Swiggy aims to raise $1.34 billion, of which $535 million will come from issuing new shares and the rest through exits from existing investors. Swiggy, which led India’s food delivery market four years ago and pioneered express commerce, has since lost significant market share in both segments. In quick commerce, it now ranks third behind Zomato’s BlinkIt and Nexus-backed Zepto.
Zomato, which recently announced plans to raise up to $1 billion through a qualified institutional placement, currently has a market capitalization of $26.2 billion.
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