Softbank-backed Swiggy to file IPO draft papers this week to raise $1 billion: Report

Softbank-backed food delivery platform Swiggy is likely to file papers for its initial public offer this week, according to a media report.

The Bengaluru-based company reportedly expects to raise more than USD 1 billion through the IPO, the report, quoting people familiar with the matter, stated.

Other details such as the size of the issue and timing of the Swiggy IPO are still being discussed and can be changed.

Companies are usually required to launch their IPOs within a year of receiving SEBI's observations on their DRHPs. In regulatory parlance, SEBI's observations mean a green signal for a company to make its public offer.

Founded in 2014, Swiggy competes with publicly-listed Zomato in food delivery and quick commerce businesses. Its other rivals are Amazon’s India business and Tata Group’s Bigbasket.

According to Swiggy’s website, the company partners with over 1.5 lakh restaurants across the country to deliver food.

The food delivery platform reported revenue from operations of ₹5,476 crore in the first three quarters (April-December period) of FY2024. It reported a loss of ₹1,600 crore during the period.

According to reports, Swiggy’s food delivery business is profitable but is incurring losses in the grocery delivery Instamart business.

Swiggy will join the likes of new-age internet companies Zomato, Mamaearcth, Nykaa and Paytm after listing.

Swiggy’s rival Zomato is valued at ₹2,39,234.88 crore as per its latest trading price of ₹270.95 per share on NSE.