India's leading food delivery company Swiggy is preparing for a significant milestone as it eyes a mid-2024 initial public offering (IPO) with an estimated issue size of $1 billion (INR 8,300 Cr). This move is anticipated to be the internet company's largest IPO next year. As Swiggy charts a course towards profitability, key investor SoftBank (TYO:9984) is considering selling a portion or its entire 9% holding in the company, which is valued at over $800 million. This potential sale would mark one of SoftBank's largest cashouts from its listed startup investments, reflecting a strategic shift towards artificial intelligence-centric ventures.
The decision by SoftBank to divest comes after its initial $450 million investment in Swiggy's Series J funding round. The market valuation of Swiggy, as it approaches the public markets, is expected to be influenced by its financial performance in FY24 and the stock performance of its competitor Zomato, according to top investors monitoring the sector. This development underscores the dynamic nature of India's tech investment landscape and the growing maturity of its internet enterprises.
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