Swiggy Weighs $150M IPO Increase to Raise $1.4B

Indian food delivery company Swiggy is thinking about adding an extra $150 million to the fresh issue part of its initial public offering

The company wants to raise a total of $1.4 billion in what is expected to be one of India’s most extensive public offerings this year.

A 15-page notice for a meeting with shareholders filed late last week says that the Bengaluru-based startup will ask shareholders to accept raising to ₹50 billion ($600 million) through a new issue of shares. This is more than the $450 million that was initially planned.

The last time Swiggy raised money was in early 2022; it was worth $10.7 billion. TechCrunch has learned that the company is considering going through with its plan to sell about $800 million worth of shares from existing investors in an IPO. People familiar with the matter say that the startup wants to be worth about $15 billion in the IPO.

Swiggy is holding a shareholders meeting on October 3 to get approval for its updated IPO plans, which include a more significant fresh issue and an offer for sale by existing owners. The notice was first revealed by the Indian news site Entrackr.

Swiggy is one of India’s most successful food service and quick-buy startups. It has investors like Prosus Ventures, SoftBank, and Accel. In the fiscal year that finished in March 2024, it made $1.4 billion. At the time, the company said that its Instamart service for quick shopping brought in $1 billion in gross merchandise value every year.

Zomato, BigBasket, which is owned by Tata, and Zepto, which General Catalyst backs, are all strong competitors for the new company. At the end of last month, Bank of America analysts wrote to investors, “We see the quick-commerce industry going through a phase of increased competition in the next 6 to 12 months.”

“The top three platforms are moving into each other’s land areas. In the past six to twelve months, the top three competitors have increased their product lines and rented larger dark shops to meet rising demand. They have partially done this by moving some of the e-commerce market to quick.com. Users aren’t price-conscious and already have a lot of choices, so it’s hard for even the top three to break into other companies’ strongholds, the note said.

Last month, experts at Bank of America said that Indian companies will be able to raise about $11 billion in the second half of this year through IPOs and FPOs.