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India Based Swiggy Aims To Raise $800M IPO Amidst Stiff Competition

While there is massive competition between the IPO bound Swiggy & Zomato, Swiggy is likely to have the upper hand as it has quick commerce under its umbrella.

Swiggy Raises Funds Worth $700M

Swiggy is gearing up for a tough market ahead with swarming competition from multiple entities. But, the Indian food delivery giant is preparing to raise an IPO next year worth $800 million, according to sources. Zomato is their toughest competitor in the food delivery segment, and while Swiggy was the undisputed king of the quick commerce segment, now there is rising competition from Dunzo, Bigbasket, Blinkit, and Zepto; all funded by big investors.

Even in the face of such stiff competition, Swiggy seems to fare quite well. Earlier in 2022 they raised $700 million and were valued at $10.7 billion, which is almost double their last year’s valuation. Since its founding in 2014, the group has raised a total of $3.3 billion from major investors such as SoftBank, Invesco, Accel Partners, and Prosus Ventures.

However, it is not going to be easy for Swiggy to raise the $800 million valuations. The current Indian stock index is showing a downfall due to a number of reasons. Other publicly traded Indian startups such as PolicyBazaar, Nykaa, Zomato, etc. are not faring well either. Zomato’s shares have fallen 41% since late last year, and Nykaa and Policybazaar both witnessed slumps of 33% and 36%. So, there is definitive pressure on Swiggy to come up with a strategy to raise its equity.

The food delivery segment in India was facing a massive boom during 2014 – 2015. Not only did a number of startups such as TinyOwl, Yumist, Spoonjoy, etc. arrive on the scene, but they were also able to find investors. However, the race soon trickled down, and the two remaining champions were Swiggy and Zomato. While there is massive competition between the two, Swiggy is likely to have the upper hand since it has quick commerce under its umbrella.

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