Food delivery giant Swiggy’s upcoming initial public offering (IPO) on Wednesday will be a crucial test for India’s appetite for billion-dollar tech listings. The $1.4 billion IPO, which has already garnered strong institutional interest, will provide a public comparable for rival Zomato and gauge investor sentiment towards large-scale tech debuts in the country.
India has seen a surge in tech IPOs in recent years, with over a dozen startups going public since 2020. However, the market has displayed a preference for smaller offerings, with several high-profile listings struggling post-debut. Beauty e-commerce firm Nykaa and insurance provider Star Health, for instance, are trading well below their IPO prices.
Swiggy’s offering, seeking a valuation of $11.3 billion, will be one of the largest Indian tech IPOs to date. Its success or failure could set the tone for a wave of potential billion-dollar-plus listings from growth-stage startups in the next 24 months.
The food delivery space, dominated by a duopoly between Swiggy and Zomato, has emerged as a key battleground. Zomato’s stock has surged over 100% since its $1.3 billion listing in 2021, reaching a market cap of $29 billion this year. Swiggy’s offering is expected to benefit from this positive sentiment.
Additionally, Swiggy’s foray into the burgeoning quick-commerce segment through its Instamart service has caught investor attention. Instamart is among the top three players in the space, which collectively are on track to record over $6 billion in sales this year.
However, doubts remain about the scalability of the quick-commerce model beyond major urban centers. Swiggy’s ability to navigate this challenge will be closely watched.
Ultimately, Swiggy’s IPO will serve as a litmus test for India’s readiness to embrace large-scale tech listings, even as global market conditions remain volatile. The outcome could pave the way for a new wave of billion-dollar-plus debuts from the country’s thriving startup ecosystem.
