NEW DELHI/BENGALURU (Reuters) - SoftBank-backed Swiggy filed papers on Thursday for an initial public offering, which a source said would be worth $1.25 billion, as the food delivery firm looks to tap a booming stock market in one of India's biggest listings this year.
Swiggy is selling shares worth 37.5 billion rupees ($448.56 million), while existing shareholders including Accel India and Tencent Europe will sell about 185.3 million shares, the company said in its draft prospectus.
The Bengaluru-based startup is targeting a valuation of $15 billion through the offering, the source said.
Swiggy did not immediately respond to Reuters request for comment.
It posted a net loss of 23.5 billion rupees in the year ended March 30, 2024, about 44% smaller than a year earlier. Revenue climbed about 36% to 112.47 billion rupees.
Swiggy has chosen a good time to come to the market, said WealthMills Securities equity strategist Kranthi Bathini, noting that investor sentiment towards IPOs was strong.
"It will also attract extra interest from the investors because of the outperformance of Zomato in the recent past," Bathini said.
Swiggy's IPO is the country's latest in a flurry of public offerings as the stock market surges to record highs. Around 235 companies raised more than $8.6 billion, more than double the amount raised last year, LSEG data showed.
Swiggy's Instamart is India's No.2 in the quick commerce segment with an estimated market share of 20-25%, behind Zomato-owned Blinkit which has 40-45%, according to a UBS note released in August.
Zepto, another quick commerce rival, recently raised $340 million, valuing it at $5 billion. Other competitors include Tata Group's BigBasket and Walmart-owned Flipkart's quick commerce offering 'Minutes', launched in August.
Shares of Zomato, which went public in July 2021, have more than doubled this year.