It has been reported that Swiggy, an app for rapid commerce and food delivery, has seen a minority investment from Amitabh Bachchan’s family office. The quick commerce industry is expanding quickly at the moment of the investment because of the growing demand for faster delivery services.
Swiggy’s staff and early investors sold their shares to Bachchan’s family office, indicating a calculated investment in the company’s expansion. With Swiggy directly competing with Zomato and Zepto, this move is anticipated to increase competition in the rapid commerce industry.
According to experts, this investment will raise the stakes in the rapid commerce market and draw attention to Swiggy’s impending IPO. Instamart, the company’s grocery service division, is what drives growth; in March 2024, the company’s worth was $15.1 billion.
Billionaire Raamdeo Agrawal, chairman of Motilal Oswal Group, also bought stakes in Swiggy. He had invested in Swiggy’s competitor Zepto in July.
SoftBank-backed Swiggy is targeting a valuation of around $15 billion for its upcoming IPO to raise $1-1.2 billion, news agency Reuters had reported. The deal would make it one of biggest Indian IPOs this year.
Swiggy received a shareholder approval in April for an IPO that would raise up to $1.25 billion and its confidential filing is expected to be cleared by the Indian markets regulator within a month or so.
The company is targeting a valuation of around $15 billion, though the final figure can change, Reuters reported. Swiggy said in response to a Reuters query that it could not comment on “any market speculation”.
Its last funding round, led by Invesco in 2022, valued it at $10.7 billion. Swiggy aimed to use IPO proceeds to expand its quick commerce Instamart business and open more warehouses to better compete with Zomato.
Zomato’s shares have more than doubled since listing in 2021 and it has a market valuation of around $28 billion.
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