Online food delivery platform Swiggy has cut its IPO valuation. The new valuation is $11.3 billion (Rs 95 thousand crore), which is about 25% less than the previous valuation. Earlier there were reports that the company would bring an IPO at a valuation of $15 billion (roughly Rs. 1.26 lakh crore).
According to a Reuters report, the company has taken this decision in view of market volatility, a weak start to Hyundai India's IPO and the uncertainty of the US presidential election.
BlackRock and CPPIB Rs. 11,774 crore will be invested
According to the report, BlackRock and the Canada Pension Plan Investment Board (CPPIB) will invest $1.4 billion (Rs 11,774 crore) in the IPO. This will be the second largest stock offering in the country this year.
Indian stocks have continued to fall for four consecutive weeks, the longest decline since August 2023. The Nifty-50 index is down more than 8% from its record high of September 27 due to continued foreign selling.
Swiggy's IPO could come in November
Swiggy filed confidential papers for the IPO in April this year. Once again on September 26, the company filed an updated draft.
As per the updated filing, the company has raised Rs. 3,750 crore will issue new shares, in which the existing shareholders through Offer for Sale i.e. OFS will get Rs. 18.52 crore shares will be sold.
Swiggy's revenue will grow by 36% in FY 2024
Meanwhile, Swiggy's financial condition has also improved. Swiggy's revenue to grow 36% in FY2024 to Rs. 11,247 crore, which in the previous financial year was Rs. 8,265 crores.
During this period, the company also reduced its losses by 44% and in FY 2024 it will be Rs. 2,350 crore, which in the previous year was Rs. 4,179 crores. The company has been helped to reduce losses by controlling its costs.
Although Swiggy has underperformed Zomato, Zomato in FY2024 is expected to reach Rs. 12,114 crore in revenue, while Swiggy's revenue was Rs. 11,247 crores. Similarly Zomato Rs. 351 crore in profit, while Swiggy made Rs. 2,350 crore was lost.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
