SoftBank’s Masayoshi Son believes that if meal delivery business Swiggy decides to go public at some time, it will have a solid offering, similar to Zomato’s excellent stock listing.
“I believe we will see good returns from here as well if they (Swiggy) go public. In an earnings presentation on August 10, SoftBank CEO Son stated, “That is our expectation.” Swiggy was reportedly valued at over $5 billion as SoftBank led a $1.25 billion investment.
While Zomato was valued at roughly $5 billion in a private investment round earlier this year, when it went public, it had a market cap of over $13 billion. Since then, the stock has been hovering around that level. Swiggy, for one, has no plans to list just yet. It has considered an IPO, but there is no timetable and no actual action being taken right now, according to CEO Sriharsha Majety in a recent interview.
As of June this year, Swiggy has over 20 million monthly users and processes 1.5 million orders per day, according to Son’s presentation. From June 2020 to June 2021, orders increased 2.5 times, while revenue increased 2.8 times.
SoftBank’s Vision Fund, which was chastised less than two years ago for poor investments and over-aggression, made a $2.14 billion profit in the first quarter of 2021. SoftBank reported over $45 billion in yearly net profits in May, a new high for Japanese companies, because to successful portfolio listings around the world, primarily in South Korea’s Coupang. Coupang’s stock, on the other hand, has dropped almost 15% since then, reducing SoftBank’s earnings.