Mumbai: Online food delivery platform Swiggy has received approval from the Securities and Exchange Board of India (SEBI) to launch an IPO. Swiggy had submitted draft papers to SEBI for its initial public offering (IPO) in April.According to media reports, the company can launch this IPO in November this year. Swiggy is planning to raise more than Rs 11 thousand crore through this at a valuation of Rs 1.25 lakh crore. There will be fresh shares worth Rs 5000 crore.
Earlier, Swiggy had set a target of raising about $ 1.25 billion (about Rs 10 thousand crore) through its IPO. Of this, about Rs 3,750 crore was to be raised through sale of new shares and Rs 6,664 crore through offer-for-sale (OFS).
Swiggy wants to compete with Zomato and Blinkit
The purpose of this move of Swiggy is clear that it wants to compete with Zomato and Blinkit. Both Zomato and Blinkit have increased their profitability since Swiggy filed its draft IPO papers in April.Apart from this, new companies like Zepto have also strengthened their hold in the market by raising funding of $1 billion in the last two months. Not only this, Walmart has also intensified the competition by entering the quick commerce segment through Flipkart Minutes.