Amitabh Bachchan's Family office Takes Minor Stake in Swiggy

The family office of bollywood icon amitabh bachchan has reportedly acquired a small stake in the food delivery giant Swiggy. This investment highlights the growing interest in the quick-commerce sector, fueled by increasing demand for rapid delivery services.

According to the Economic Times, Bachchan’s family office obtained this stake by purchasing shares from Swiggy’s employees and early investors. While the exact financial terms of the deal have not been disclosed, it is considered notable.

This development comes as swiggy is preparing for an initial public offering (IPO) with a projected valuation of $15 billion. Additionally, Raamdeo Agrawal, chairman of Motilal oswal Financial Services, is also reported to have invested in Swiggy.

Swiggy IPO Details

The SoftBank-backed indian food delivery leader is aiming for a valuation of approximately $15 billion for its forthcoming stock market debut, seeking to raise $1 to $1.2 billion, according to sources familiar with the matter. This IPO would be one of the largest in india this year.

Swiggy, which competes with zomato in the online food delivery space, has heavily invested in the quick commerce sector, focusing on delivering groceries and other items within 10 minutes. In April, swiggy received shareholder approval for an IPO aiming to raise up to $1.25 billion. Its confidential filing is expected to be reviewed by the indian market regulator soon, after which a public prospectus will be filed.

Although swiggy has not commented on market speculation, its last funding round in 2022, led by Invesco, valued the company at $10.7 billion. One source indicated that the IPO proceeds are intended to expand Swiggy’s quick commerce Instamart business and increase its warehouse capacity to better compete with Zomato.

Zomato’s market valuation has risen to about $28 billion since its 2021 listing, with its shares more than doubling in value. According to Goldman Sachs, quick deliveries account for $5 billion, or 45%, of India’s $11 billion online grocery market, with projections suggesting this segment could capture 70% of the market by 2030.

While Swiggy’s food delivery business is profitable, its grocery delivery service, Instamart, is still operating at a loss. The company currently operates around 550 grocery warehouses across 35 indian cities.
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Subashini

28/08/2024 04:37 PM