Swiggy's $1.3 billion initial public offering (IPO) has sparked mixed reactions from the market, with a notably lukewarm response from Indian investors. Initially targeting a valuation of $15 billion, the food delivery giant had to scale back its ambitions, slashing the IPO valuation to $11.3 billion. The move aims to ensure a more favorable market debut amid volatile conditions and concerns over high valuations.
Global institutional players like BlackRock and the Canada Pension Plan Investment Board have shown confidence by committing substantial investments. However, local investor sentiment remains cautious. Swiggy’s listing is set to be India’s second-largest IPO this year, trailing only behind Hyundai India’s $3.3 billion offering, which also faced subdued retail interest.
Despite these challenges, Swiggy remains a key player in India’s booming quick-commerce and food delivery market, competing fiercely with Zomato. Analysts suggest that Swiggy’s performance post-listing will be closely watched as a bellwether for the Indian tech sector's resilience amid global uncertainties.