Softbank-backed Swiggy debuted on the Indian stock exchanges on Wednesday at Rs 420 apiece—an 8% premium over its issue price of Rs 390. The shares ended the day at nearly Rs 464 apiece on the National Stock Exchange (NSE Ltd.), marking a 19% gain from the issue price and valuing the company at $12.1 billion.
In comparison, rival Zomato is valued at $27 billion as of Wednesday’s close.
Swiggy had raised $1.4 billion in its IPO—the country’s second-largest this year—intensifying its rivalry with Zomato and signalling investor interest in India’s growing food and grocery delivery market.
Investors lapped up Swiggy’s shares despite weakness in broader market sentiment. The benchmark Sensex has fallen 5.22% in the last month.
“Market sentiment has an impact on the excitement witnessed for an IPO and despite the correction we have seen recently, Swiggy’s IPO has been promising and we believe, that the IPO was fairly priced, leaving enough on the table for pre-IPO and retail investors,” said Aakash Agrawal, Head of Digital & New-Age Business at Anand Rathi.
In a recent interview with DealStreetAsia, the founder of IPO-bound fintech Mobikwik, had said she is “a little concerned” about market volatility as the company’s IPO nears.
Swiggy itself had slashed its IPO valuation to $11.3 billion, 25% below the initial goal of $15 billion as market volatility and the lacklustre debut of Hyundai India weigh on sentiment, according to a Reuters report.
The IPO arrives as India’s food delivery market, dominated by Swiggy and Zomato, experiences fierce competition. Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy, like Zomato, initially focused on food delivery but later expanded into grocery delivery with Instamart. Both Swiggy and Zomato have fought to increase market share through innovations, faster delivery, and consumer incentives.
Zomato, which debuted on Indian exchanges in 2021, saw its shares surge nearly 66% on the first day and has since more than doubled. It closed at Rs 259 on Wednesday, down 0.75% from its previous close.
“Zomato was a dark horse in the public markets, with not many investors who understood how to value the company. In many ways, Zomato set the trend for most tech IPOs and especially after it attained profitability, the market-place business at-large was understood by investors. Asset-light companies like Zomato and Swiggy spend money on building ecosystems and network effects, instead of capital expenditure and if and once these network effects play out, they become cash-generating machines,” added Agrawal.
Swiggy has made progress towards profitability but remains in the red, though it has narrowed losses in recent years. In contrast, Zomato last month reported a net profit of Rs 176 crore ($21 million) for the September quarter (Q2 FY 2025)—4.8 times the Rs 36 crore reported a year ago but 30% down from the Rs 253 crore reported in the June quarter.
This profitability has strengthened Zomato’s public market position, setting a benchmark Swiggy’s investors will watch closely.
“At close to $11 billion, the valuation is less than half of Zomato’s $27 billion valuation and growth drivers remain aplenty. In fact, with the large opportunity in quick commerce and dining, with rising AOVs and high double-digit growth potential, we believe the valuation of Swiggy is fair with potential to grow as business milestones are attained,” added Agrawal.
Swiggy, backed by investors such as Naspers, Norwest Venture Partners, Tencent, and SoftBank, last secured $700 million in funding, which pegged the valuation of the company at $10.7 billion.
A recent investigation by India’s antitrust body, the Competition Commission of India (CCI), found that Zomato and Swiggy breached competition laws, with their business practices favouring select restaurants listed on their platforms. Exclusivity arrangements between Swiggy, Zomato and their respective restaurant partners “prevent the market from becoming more competitive,” the CCI’s investigation arm noted in its findings as reported by Reuters.
