Indian food delivery leader Swiggy has cut its IPO valuation again, this time to $11.3 billion, down 25% from its initial $15 billion target, due to market instability and Hyundai India’s underwhelming debut, two sources revealed on Sunday. BlackRock and the Canada Pension Plan Investment Board (CPPIB) are set to back Swiggy’s $1.4 billion IPO, the second largest offering in India this year, according to sources close to Reuters. Representatives for Swiggy, BlackRock, and CPPIB have yet to comment.
Indian stocks have been on a four-week losing streak, with the Nifty 50 index dropping over 8% since record highs on Sept. 27 amid continuous foreign outflows. Hyundai India’s IPO faced a chilly reception last week, as its shares slipped 7.2% on debut due to valuation concerns. To avoid a similar response, Swiggy, with backing from SoftBank and Prosus, revised its valuation after consulting investors.
Swiggy aims to ensure a successful IPO, a person close to the matter said, especially given the high-stakes U.S. presidential election on Nov. 5. Its last funding round in 2022 led by Invesco valued the company at $10.7 billion.
While the sector remains competitive with rivals like Zomato and the booming quick-commerce trend, India’s IPO market has remained robust, with over 270 companies raising $12.57 billion this year—well surpassing last year’s $7.4 billion.