Swiggy, the Indian food delivery behemoth backed by SoftBank, is aiming a value of approximately $15 billion for its impending public market offering, which is expected to raise $1-1.2 billion, according to three individuals familiar with the situation. The transaction would make it one of the largest Indian initial public offerings this year.

Swiggy competes with Zomato in India's online restaurant and cafe food delivery market, and both have placed significant bets on the current so-called rapid commerce boom, in which groceries and other things are delivered in 10 minutes.

Swiggy gained shareholder approval in April for an IPO for up to $1.25 billion, and its secret file is anticipated to be accepted by the Indian markets regulator within the next month or two. According to the persons who declined to be named since the topic is private, once approved, it will file a public prospectus.

The business is aiming for a valuation of roughly $15 billion, though the ultimate amount may fluctuate, they added. Swiggy declined to comment on "any market speculation" in response to a Reuters question. 

Invesco led the company's final investment round in 2022, which valued it at $10.7 billion. According to one of the individuals, Swiggy planned to utilize the profits from the Initial Public Offering to develop its rapid commerce Instamart business and create more warehouses in order to compete with Zomato.

Zomato's stock has more than quadrupled since its IPO in 2021, with a market capitalization of over $28 billion. In April, Goldman Sachs said that rapid deliveries represented for $5 billion, or 45%, of India's $11 billion online grocery business, with the sector expected to reach 70% by 2030.

According to Reuters, Swiggy is increasingly focused on its Instamart business. Swiggy's food delivery operation is profitable, while Instamart's grocery delivery division remains loss-making, according to sources. The firm has over 550 food warehouses in 35 Indian cities.