Once-dominant Swiggy is seeking an IPO valuation of $11.3 billion, less than half of Zomato’s value

Swiggy, one of India’s largest food delivery and fast commerce startups, is seeking a valuation of as much as $11.3 billion in its IPO, representing a 57% discount to Zomato’s market capitalization.

The loss-making Bengaluru-based company has set an IPO price band of ₹371-390 ($4.41-$4.64) per share in its IPO next month. At the high end, the valuation would represent only a small premium to the corporate’s market value of $10.7 billion in early 2022, which is removed from recent valuations by mutual fund investors Invesco and Baron.

Swiggy goals to lift $1.34 billion, of which $535 million will likely be through a fresh share issue and the remainder through exit from existing investors. Swiggy, which led India’s food delivery market 4 years ago and pioneered fast trading, has since lost significant market share in each segments. In terms of fast trading, it currently ranks third behind Zomato’s BlinkIt and Nexus-powered Zepto.

Zomato, which recently announced plans to lift as much as $1 billion through a professional institutional placement, currently has a market capitalization of $26.2 billion.