Swiggy's IPO attracts bids worth $15 billion from global investors
What's the story
Leading Indian food and grocery delivery platform Swiggy has drawn more than $15 billion in bids for its upcoming initial public offering (IPO) in India. The IPO, which is worth $1.35 billion, will be one of the biggest stock offerings this year. After a major market correction in October, Swiggy has adjusted its estimated valuation from the IPO to $11.3 billion, a 25% drop from an earlier $15 billion projection.
Investor participation
Major investors show interest in Swiggy's IPO
Prominent investors such as Norway's sovereign wealth fund Norges Bank Investment Management, Fidelity International, and US-based Capital Group have expressed strong interest in Swiggy's IPO. The three have placed bids worth over $15 billion combined. This is 25 times the $605 million portion reserved for such investors, Reuters reported citing four sources aware of the details.
Market trend
Swiggy's IPO reflects growing interest in quick commerce
The overwhelming interest in Swiggy's IPO reflects a growing appetite for food delivery and "quick commerce" in India. In this space, goods are delivered in 10 minutes. The IPO anchor book set aside for large investors has already been oversubscribed with bids worth over $15 billion, further underscoring this trend. Other prospective investors reportedly include BlackRock and the Canada Pension Plan Investment Board.
Market growth
Quick commerce sales in India expected to reach $6 billion
Research firm Datum Intelligence predicts quick commerce sales in India will hit $6 billion this year, up from just $100 million in 2020. The forecast highlights the potential of companies like Swiggy, Zomato, and Reliance Industries Limited (RIL) who are riding this trend. These companies plan to deliver everything from milk to cosmetics to iPhones within minutes, beating Amazon on delivery times.