Swiggy is preparing for an IPO.
NEW DELHI: Swiggy, the food-tech giant, is making the biggest leap in its food business since its inception in July 2014. Swiggy is reportedly planning an initial public offering (IPO) soon. The company is looking to offload its kitchen service business before launching an IPO. Among the first in-house businesses it is jettisoning is its kitchen infrastructure vertical – Swiggy Access. Swiggy Access was launched more than half a decade ago to offer a plug-and-play kitchen as a service offering for restaurants to set up their cloud kitchens.
Before it comes out with its initial public offering (IPO), food-tech major Swiggy wants to do away with businesses that are not doing well, including its kitchen infrastructure vertical — Swiggy Access. Launched in 2014, the Bengaluru-based company is carefully making plans for the launch of its IPO.
The food delivery company only wants to keep profitable businesses and wants to get rid of any struggling or unprofitable ones. Sources told ET that the cost of infrastructure was too high to sustain the business. Ahead of its IPO, Swiggy wants to look attractive especially when several new age tech companies have witnessed corrections in their valuations.
Currently Swiggy Axis has a valuation of around 83 crores while in terms of Kitchen at the rate valuation is around Rs 331 crore. Hence, they will be looking to offload this and maybe it will happen through a share swap deal and this is all according to ET reports.