Swiggy cuts IPO valuation by 10-16% to $12.5-13.5 billion due to market volatility: Report

Food delivery startup Swiggy has cut its valuation by 10-16 percent to $12.5-13.5 billion for its upcoming IPO due to market volatility. 

Recent market volatility and a correction in Indian stock markets have prompted Swiggy to consider a lower valuation, as it wants to ensure “a lot of value is left on the table” for investors who bid, Reuters reported citing sources.  

Swiggy was earlier targeting a $15 billion valuation for its $1.4 billion November IPO, which will be the country’s second biggest stock offering this year, behind Hyundai India’s debut this week, the report said, adding that Swiggy is expected to list on November 13 on Mumbai bourses and open the IPO for subscriptions in the week before that, though the date could change slightly. 

Swiggy’s much-anticipated IPO is set to be one of the most awaited public offerings of the year. Following in the footsteps of its rival Zomato, which made a strong debut on the stock market, investor expectations are high for Swiggy — especially regarding its path to profitability. 

According to its Updated Draft Red Herring Prospectus (UDRHP), Swiggy plans to invest Rs 982.4 crore to expand its network of dark stores for the quick commerce segment and cover lease and license payments. The IPO is expected to raise around Rs 10,000 crore, with a fresh issue worth Rs 3,750 crore and an offer for sale (OFS) exceeding Rs 6,500 crore. 

Swiggy is currently eyeing a $10 billion valuation, while Zomato has already reached a $30 billion market cap. The quick commerce segment remains a key focus for Swiggy, with the company aggressively expanding its dark store network and securing several brand partnerships to strengthen its foothold. 

As Swiggy prepares for its potential Diwali IPO, the road to profitability remains a work in progress. With stiff competition from Blinkit, Zepto, Flipkart Minutes, and BigBasket, the quick commerce space is becoming increasingly crowded, but Swiggy’s aggressive push could give it the edge in the long run.