Swiggy cuts IPO valuation to $12.5 bn-$13.5 bn due to market volatility

Swiggy is the biggest online food ordering and delivery service in India, and it ranks first on Unicorn startup lists in India. Founded in 2014, this Bangalore-based startup has now spread to over 100 Indian cities. Swiggy pioneered fast pick-and-drop food delivery services to improve people’s quality of life. It provides a single window for ordering from a wide range of restaurants as well as a comprehensive food entry and delivery system that links local eateries with foodies.

Swiggy cuts IPO valuation

The food delivery behemoth Swiggy has lowered its internal target by 10–16% due to market volatility, aiming for a company valuation of $12.5 billion–13.5 billion for its upcoming initial public offering (IPO). For its $1.4 billion November IPO, Swiggy was previously aiming for a $15 billion valuation, according to news agency Reuters. This was India’s second-largest stock offering in its primary market, after Hyundai Motor India’s market debut this week.

Market Volatility

Due to recent market volatility and a correction in the Indian stock markets, Reuters reports that Swiggy is contemplating a lower valuation for its upcoming IPO. A lot of value is left on the table for investors who bid on the issue, according to the leading food delivery startup.

Due to the persistent selling by foreign investors, the domestic equity benchmark Nifty 50 index has fallen up to 7.15% from its record highs on September 27. This has set it up for four weeks of losses.

Hyundai’s IPO failed, and after listing, it dropped 7.2%

Hyundai India shares fell 7.2% on their market debut after retail investors gave a lukewarm response during the bidding period amid concerns about a lofty valuation and slowdown in the auto industry. Despite recent jitters, India’s IPO market has been buoyant, with 270 companies raising $12.57 billion this year, eclipsing the $7.4 billion raised in 2023.

Swiggy IPO Information

Swiggy, backed by SoftBank and Prosus, is expected to list on the bourses on November 13 and open the IPO for subscriptions the week before that, though the date could change slightly. Swiggy plans to conduct roadshows for its stock offering in many Indian cities starting October 30.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.