Swiggy IPO valuation at $11.2 billion; BlackRock, CPPIB, SBI MF, others subscribe to anchor book

Food and grocery delivery firm Swiggy’s initial public offering (IPO) will value the Bengaluru-based company at $11.2 billion, just a tad bit higher than its last round more than two years ago, as per people in the know.

The Rs 11,300 crore IPO, among the largest this year in India, is likely to launch on November 6 and will see as much as Rs 6,800 crore in secondary sale via an offer for sale (OFS) with primary capital of Rs 4,500 crore coming into the company.

First filed with the country's capital markets regulator Sebi in April, the public issue has seen the likes of BlackRock, CPPIB, SBI Mutual Fund, join in as foreign and domestic investors.


Prosus, which holds a 31% stake in Swiggy through its affiliate MIH India Food Holdings, is expected to recover more than half of its total investment of around $1 billion, made over multiple rounds, by selling less than one-fifth of its stake.

Swiggy’s last private round valuation was $10.7 billion when it raised $700 million in a round led by US asset manager Invesco in January 2022.

“The company was expected to price its IPO between $11-12.5 billion, however, the idea was to maximise retail participation and therefore the pricing has been kept at the lower end of the range earlier discussed,” said a person in the know.

Early investors like Accel, Elevation Capital, Norwest Venture Partners will sell shares in Swiggy in the OFS. Chinese tech major Meituan will sell a $200 million block, online news publication Entrackr reported on Friday.

At the $11.2 billion-valuation, Prosus’ share sale in the OFS component will be worth around $580 million, while Accel will sell stake worth nearly $60 million, followed by Elevation Capital and Tencent, which are are likely to sell stakes worth $30-35 million each, as per Swiggy’s updated draft red herring prospectus on September 27.

Through the IPO, Swiggy’s founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy are also partially selling their stakes.

Queries sent to Swiggy had not elicited a response till Saturday evening.

Swiggy had filed its draft prospectus with Sebi under the markets regulator’s confidential route in April and received an approval for it in September. Initially, Swiggy was set to raise Rs 3,750 crore in primary capital but secured an approval from its shareholders in October to increase the fresh issue component of the IPO.

The Bengaluru-based company’s listed rival, Zomato, which has a market capitalisation of Rs 2.24 lakh crore, or around $26 billion, has also received a nod from its board to launch a Rs 8,500 crore through the qualified institutional placement (QIP) route.