Food delivery titan Swiggy plans to use a major chunk of its impending IPO proceeds to expand Instamart, its quick commerce arm, as per a Livemint report.
What Happened: Amidst escalating competition from BlinkIt, Zepto, and BigBasket, Swiggy is gearing up for a $1.25 billion IPO, scheduled for November. Prosus Ventures, Norwest Venture Partners, and Goldman Sachs are likely to offload some of their Swiggy shares during the IPO, while SoftBank is expected to maintain its stake, the report added.
Swiggy aims to raise primary capital at an estimated valuation of around $15 billion in the IPO, with the final valuation to be determined as the road shows progress. The fresh funds will be primarily used to double its network of dark stores serving groceries and home essentials to over 1,000 in the next four years.
Swiggy’s IPO plans come when its closest competitor Zomato is rapidly integrating BlinkIt, its quick commerce acquisition. Swiggy, which started as a food outlet aggregator back in 2014, has shifted its focus to improving margins in the last 18 months.
Reports earlier suggested that Swiggy was preparing to file its draft red herring prospectus with the Indian markets regulator by the first week of September, making it the nation’s second-largest IPO of a venture capital-backed firm.
Earlier in July, media reports said that early investors such as Prosus, Accel, and Elevation Capital were partially diluting their stakes in Swiggy in secondary transactions, a typical move in the lead-up to an IPO. New investors were acquiring the stakes, including asset and wealth management firms like 360 One, and high-net-worth individuals.
Read Next: After E-Bike, Ola Electric Now Eyeing 3-Wheeler Launch: Report
Engineered by Benzinga Neuro, Edited by Utkarsh Roshan
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.