Swiggy lowers IPO valuation target to $12.5-13.5 billion amid market volatility: Report

Food delivery giant Swiggy has revised its internal valuation target for its upcoming initial public offering ( IPO ) to between $12.5 billion and $13.5 billion, down from its earlier goal of $15 billion, news agency Reuters reported, quoting sources familiar with the matter. This 10-16 per cent reduction reflects the company’s cautious approach amid current market volatility.

Swiggy initially planned for a $1.4 billion IPO in November, which would be the second-largest public offering in India this year, following Hyundai India's debut earlier this week. However, due to recent corrections in the Indian stock market, the company decided to lower its valuation expectations to leave "a lot of value on the table" for investors, according to one source.

India’s benchmark Nifty 50 index has experienced four consecutive weeks of losses, dropping 7.15 per cent from its record highs in late September due to consistent foreign selling. Hyundai India's stock debuted with a 7.2 per cent drop, reflecting the market's cautious sentiment, especially regarding lofty valuations and the auto industry's slowdown.

Swiggy , backed by SoftBank and Prosus, is expected to list on the Mumbai bourses on November 13, with the IPO subscription period opening in the preceding week. The date may shift slightly, depending on market conditions, but roadshows for the stock offering are set to begin on October 30 across various Indian cities.

Despite the market's recent jitters, India's IPO scene remains robust. So far, approximately 270 companies have raised $12.57 billion this year, surpassing the $7.4 billion raised in 2023. Swiggy competes with Zomato in India's fast-growing food delivery and quick-commerce sectors, where companies deliver groceries and other products within 10 minutes.

Swiggy was last valued at $10.7 billion in its 2022 funding round, led by Invesco. The company has yet to issue an official comment on its latest IPO plans.

(With Reuters inputs.)