Swiggy has reportedly lowered the valuation target for its upcoming initial public offering IPO to between $12.5 Bn and $13.5 Bn.
Originally aimed for a $15 Bn valuation, Swiggy reduced it to $12.5-13.5 Bn for its $1.4 Bn IPO because of market volatility and corrections in the Indian equities market, Reuters reported. The company wants to ensure that “a lot of value is left on the table” for investors who bid for the public issue, one source commented.
Zomato’s valuation stands strong at $26.7 Bn
Meanwhile, Swiggy’s rival Zomato was valued at around $26.7 Bn by the end of trading on Thursday, October 24. The report says Swiggy aims to list on the stock market on November 13, with its public issue opening the week before.
Previously in this month, Swiggy got shareholder approval to increase the fresh issue size in its IPO to INR 5,000 Cr from INR 3,750 Cr. The IPO will include an offer-for-sale of up to 18.53 Cr shares. According to Swiggy’s DRHP, its net loss grew over 8% to INR 611 Cr in Q1 FY25 from INR 564.08 Cr a year ago due to rising operating costs.
Swiggy raises platform fee to INR 10
In recent days, Swiggy raised its platform fee to INR 10 from INR 7 per order, a 43% increase. Ahead of its IPO, the company has been launching new services to grow its user base and revenue. Earlier this month, Swiggy launched Swiggy Bolt, delivering quick-to-prepare dishes in 10 minutes, now operating in six cities: Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune.
Additionally, the food tech giant is testing a high-priced concierge membership called Rare Club. It gives subscribers access to exclusive high-end experiences and events. The yearly membership fee starts at INR 50,000.
