Major investors, including Norway’s sovereign wealth fund Norges Bank and Fidelity, have placed bids totaling over $15 billion in Swiggy's Indian IPO, 25 times the $605 million allocation reserved for these investors, four sources told Reuters on Thursday.
Large investors bet $15 billion in Swiggy's IPO
Swiggy, the Indian food and grocery delivery giant backed by SoftBank, is set to launch its $1.35 billion IPO next week, which is expected to be the country’s second-largest stock offering this year. The bidding process is already underway.
Following a recent correction in stock markets, Swiggy has reduced its IPO valuation estimate to $11.3 billion, a 25% drop from the previous estimate of $15 billion.
Reflecting strong interest in India’s food delivery and "quick commerce" sectors – where goods are delivered within 10 minutes – the IPO’s anchor book reserved for large investors has already received bids exceeding $15 billion, according to the sources, who declined to be named as the process is confidential.
Top investors include Norges Bank Investment Management, Fidelity International, and U.S.-based Capital Group, according to three of the sources. A fourth source added that BlackRock and the Canada Pension Plan Investment Board are also among the investors.
Market to grow notably
Neither Swiggy nor the investors responded immediately to requests for comment.
Research firm Datum Intelligence projects that India’s quick commerce sales will reach $6 billion this year, up from $100 million in 2020.
Indian companies, including Swiggy, its main rival Zomato, and billionaire Mukesh Ambani’s Reliance, are heavily investing in the quick commerce model as they compete to deliver everything from milk to cosmetics to iPhones within minutes, outpacing competitors like Amazon in delivery speed.
