According to a report from Nikkei Asia, grocery supplier Swiggy is preparing for an initial public offering (IPO) of $ 800 million next year. Swiggy has recently become a decacorn with $700 million funding led by Invesco, doubling its valuation to $10.7 billion. Decacorn refers to a startup valued at more than $10 billion.
This is due to rival Zomato, who made a great debut in the market last year, with shares below the issue price. Zomato has a market capitalization of approximately US $ 9 billion.
Zomato was valued at $ 5.4 billion before the IPO. Weak order value growth was reported in the third quarter. Swiggy, backed by SoftBank Group, has begun adding independent directors to its board of directors as food delivery companies plan to position themselves as logistics companies.
Swiggy said the latest fundraiser will help accelerate the growth of the company's core grocery delivery segment platform, in addition to investing in Instamart, food delivery companies also plan to invest $ 700 million in Instamart, which has expanded to 19 cities in recent months.
Instamart is currently competing with Blinkit and Zepto, which promise 10 minutes of delivery to seduce customers. Swiggy's IPO preparations will take place when the Indian market sees a real-life check after the implementation of the 2021 dream.