Swiggy, one of India's top food and grocery delivery companies, is gearing up for its highly anticipated IPO, which is set to raise Rs 11,300 crore. Long-term investors, such as Accel, Elevation Capital, and Norwest Ventures, are expected to earn up to 35 times their initial investment on the shares being sold. The funds will be used to repay debt, expand their subsidiary Scootsy's dark store network, and invest in technology and marketing. This move will not only benefit shareholders but also pave the way for Swiggy's growth in the competitive Indian market.
Baron Capital's increase in stake has led to a jump in Swiggy's valuation, narrowing the gap with competitor Zomato. This news comes as a welcome update for Swiggy, which has been struggling to launch its IPO for some time now. However, despite the boost in valuation, Zomato's market cap remains far ahead, with its e-commerce platform Blinkit playing a key role in driving profits. In order to compete, Swiggy has had to make cost-cutting measures, including layoffs of 400 and 380 employees last year. Currently, the company has a total of 6000 employees.