Swiggy cuts IPO valuation again, to $11.3 billion, BlackRock and CPPIB to invest, sources say

By Aditya Kalra

NEW DELHI (Reuters) – Indian food delivery giant Swiggy has slashed its IPO valuation again, to $11.3 billion, 25% below the initial goal of $15 billion as market volatility and the lacklustre debut of Hyundai (OTC:) India weigh on sentiment, two sources said on Sunday.

BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest in the $1.4 billion IPO, which will be the country’s second-biggest stock offering this year, the sources told Reuters.

Swiggy, Blackrock (NYSE:) and CPPIB did not immediately respond to requests for comment outside business hours.

Indian shares have fallen for four weeks in a row, the longest such losing run since August 2023, with the benchmark Nifty 50 index down more than 8% from record highs hit on Sept. 27, due to persistent foreign selling.

Hyundai India shares fell 7.2% on their debut last week after retail investors gave a lukewarm reception amid concerns about a lofty valuation.

Swiggy, backed by SoftBank (TYO:) and Prosus (OTC:), was concerned to avoid a tepid response to its relatively large IPO, coming amid global uncertainty from the Nov. 5 U.S. presidential election, and decided to cut the valuation in consultation with investors, said one source, with direct knowledge of the company’s plans.

Swiggy does not want a “bad IPO”, this person said. Its last funding round, led by Invesco, valued it at $10.7 billion in 2022.

It competes with Zomato in India’s online restaurant and cafe food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.

Despite recent jitters, India’s IPO market has been buoyant, with around 270 companies raising $12.57 billion so far this year, well above the $7.4 billion raised in all of 2023.