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Swiggy’s public debut will test India’s appetite for $1B+ IPOs
- Swiggy’s upcoming IPO will test the Nation's appetite for IPOs that can scale past the $1 Billion mark.
- Swiggy has already secured $1.4 Billion from institutional investors including Norway’s sovereign wealth fund, BlackRock, and eight of the top 10 Indian mutual funds.
- The Indian market has shown little interest in large-scale IPOs, where startups that raised less than $500 million have performed much better.
- Swiggy is seeking a $11.3 billion valuation, but rival Zomato's stock has surged over 100%, reaching a market cap high of $29 billion.
- Swiggy is among the dozen firms attempting to disrupt the $1.1 trillion Indian retail market that is still dominated by millions of mom-and-pop stores.
- Quick-commerce firms are changing consumer behavior in urban Indian cities, which together are on track to record sales of more than $6 Billion this year.
- Underpinning its quick-commerce business model, Swiggy operates over 600 such facilities while Zomato’s Blinkit ended the September quarter with 791 stores.
- Swiggy co-founder Sriharsha Majety believes the percentage of e-commerce in Swiggy is going to have a dramatic change.
- Swiggy’s IPO will show how willing investors are to bet on business models that prioritize growth over profits amid challenging global conditions.
- For Dutch investor Prosus, Swiggy’s listing could deliver a three-fold return. It will also be the venture firm’s biggest hit from India.
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