Swiggy Plans IPO Launch by Offloading Unprofitable Business, Swiggy Access
Swiggy, the popular food-tech giant, has announced its plan to go public soon with an initial public offering (IPO). Before the IPO launch, Swiggy is getting rid of unprofitable businesses, including its kitchen infrastructure vertical, Swiggy Access.
Swiggy Access was launched six years ago, and it offers a plug-and-play kitchen as a service to help restaurants set up cloud kitchens. However, the cost of infrastructure was too high to sustain the business.
To increase its attractiveness to investors, Swiggy is carefully planning for the IPO launch, and it aims to keep only the profitable businesses. According to sources, the valuation of Swiggy Access is around Rs 331 crore, while the overall valuation of Swiggy is approximately Rs 83 crores.
Swiggy’s decision to offload unprofitable businesses, including Swiggy Access, will help the company focus on its core business and boost its valuation ahead of the IPO launch. The move comes at a time when several new-age tech companies have seen corrections in their valuations, and Swiggy wants to ensure it remains an attractive investment option for potential investors.
With this strategic decision, Swiggy is all set to take the biggest leap in its food business since its inception in July 2014. Investors and food lovers alike are eagerly waiting to see what’s next for this promising food-tech giant.
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