A host of celebrities from entertainment and sports have bet on India’s food and grocery delivery market, hoping that Swiggy would capture the lion’s share of the market.
According to a report, the online food delivery market is expected to grow at 20% during CY23-28, largely led by user CAGR of 8-10%.
Grocery would remain the dominant category for quick commerce with a 60% share. However, quick commerce, which is a mere 0.3% of India’s retail market, could grow a share of 2-3%, led by 60-80% growth rates (Source: Elara Capital).
Leading up to the IPO, Swiggy’s shares were actively traded in the unlisted market, with notable cricketers Rahul Dravid and Zaheer Khan, tennis star Rohan Bopanna, studio owner Karan Johar, and actor and entrepreneur Ashish Chowdhry owning a piece of the company.
Swiggy received investments from Bollywood icons too with the likes of Madhuri Dixit, Amitabh Bachchan bought some shares in the company’s pre-IPO rounds through the secondary market.Further, Dalal Street’s veteran and billionaire Raamdeo Agrawal of Motilal Oswal Financial Services, who has been bullish on quick commerce, has also picked up a stake in IPO-bound Swiggy.According to an ET report, Swiggy has also received strong interest from institutional investors for its $600 million anchor book as the issue was oversubscribed 25 times, attracting bids of $15 billion.
Among key investors vying for a piece of the IPO are global investment firms Fidelity, Capital Group and Norges Bank Investment Management.
The much awaited IPO of Swiggy is set to be launched on November 6 and investors can bid for the shares till November 8. The company priced the IPO in the range of Rs 371-390 per share.
The company has increased its fresh equity sale in the IPO to Rs 4,499 crore, while reducing its offer for sale (OFS) component to 17.5 crore shares.
Swiggy is serving the IPO at a lower valuation of $11.3 billion as against its earlier target of around $15 billion. The valuations were reduced due to prevailing market volatility and the lacklustre debut of Hyundai India.
The food delivery company proposes to use the IPO proceeds for investment in its material subsidiary Scootsy, investment in technology and cloud infrastructure and also brand marketing and business promotion. This will be done over a four to five year period.
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