Food and grocery delivery firm Swiggy is reportedly back on track with its initial public offering (IPO) plans, as stated by a recent Reuters report. Following a pause earlier this year due to subdued market sentiment, the company is now aiming to have its presence on Indian stock exchanges established between July and September 2024.
Having secured $700 million in its latest funding round, the Bengaluru-based startup, which attained a valuation of $10.7 billion, has commenced discussions with financial experts to evaluate its worth, as per the mentioned report.
The company is utilizing its previous funding round’s valuation of $10.7 billion as a reference point for shaping its IPO strategy. However, the specifics of the potential stake sale or ultimate valuation are yet to be determined, the report further highlighted.
At the time of publishing this article, there was no response from Swiggy to the inquiries.
The company has reportedly reached out to eight investment banks, including Morgan Stanley, JP Morgan, and Bank of America, with a request to deliver presentations in early September. These presentations aim to consider their participation in managing the IPO process.
The food delivery firm, originally slated to go public in September 2023 as indicated by media sources, decided to delay this plan due to the volatile macroeconomic circumstances. Additionally, the company augmented its board by appointing three new independent directors in preparation for the intended public listing.
Following the attainment of profitability in its food delivery operations in March, Swiggy’s Co-Founder and CEO, Sriharsha Majety, remarked that the company has joined the ranks of the exceedingly rare global food delivery platforms that have achieved profitability in under nine years since their establishment.
However, in the past few months, Swiggy has encountered several instances of valuation markdowns due to fluctuations in the market.
One of Swiggy’s major investors, Invesco, reduced the value of its stake in the food delivery company to $5.5 billion. Additionally, Baron Capital decreased the valuation by 10% in May.