The family office of actor Amitabh Bachchan has reportedly acquired a minor stake in the food delivery platform Swiggy. This move reflects the growing interest in the quick-commerce sector, driven by the rising demand for rapid delivery services.
The Economic Times reported that Amitabh Bachchan’s family office acquired this stake by purchasing shares from the company’s employees and early investors.
While the specific financial details of the transaction remain undisclosed, it is described as significant.
This development comes in the wake of reports that Swiggy is preparing for an initial public offering (IPO) with a target valuation of $15 billion.
Additionally, the report mentions that Raamdeo Agrawal, chairman of Motilal Oswal Financial Services, has also taken a stake in Swiggy.
Swiggy IPO News
The SoftBank-backed Indian food delivery giant is also targeting a valuation of around $15 billion for its upcoming stock market offering to raise $1-1.2 billion, three people familiar with the matter told news agency Reuters.
The deal would make it one of the biggest Indian initial public offerings this year.
Swiggy competes with Zomato in India’s online restaurant and cafe food deliveries sector, and both have made major bets on the new so-called quick commerce boom where groceries and other products are being delivered in 10 minutes.
Swiggy received shareholder approval in April for an IPO that would raise to $1.25 billion and its confidential filing is expected to be cleared by the Indian markets regulator within a month or so. Following the approval it will file a public prospectus, according to the people, who declined to be named as the matter is private.
The company is targeting a valuation of around $15 billion though the final figure can change, they said.
Swiggy said in response to a Reuters query that it could not comment on “any market speculation”.
Its last funding round, led by Invesco in 2022, valued it at $10.7 billion.
One of the sources said Swiggy aimed to use IPO proceeds to expand its quick commerce Instamart business and open more warehouses to better compete with Zomato.
Zomato’s shares have more than doubled since listing in 2021 and it has a market valuation of around $28 billion.
Goldman Sachs said in April quick deliveries accounted for $5 billion, or 45%, of India’s $11 billion online grocery market and forecast the segment to reach a 70% share of that market by 2030.
Reuters in June reported that Swiggy was increasingly focusing on its Instamart business.
Swiggy’s food delivery business is profitable but grocery delivery Instamart business is still loss making, sources say. The company has around 550 grocery warehouses in 35 Indian cities.
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