Chinese food delivery giant Meituan has offloaded a significant portion of its stake in Swiggy, India’s leading food delivery and convenience services platform, through a secondary transaction valued between $200-$220 million, according to sources familiar with the deal. Meituan initially invested in Swiggy in 2018, with additional participation in a subsequent funding round in 2020. This recent sale marks Meituan’s latest adjustment to its international portfolio as Swiggy gears up for its much-anticipated IPO.
The exact stake divested by Meituan, as well as valuation specifics, remain undisclosed, but the transaction reportedly reflects Swiggy’s estimated valuation of approximately $10 billion. Meituan, known as China’s “super app” for services spanning food delivery, hotel booking, and ride-hailing, has leveraged a high-volume, low-margin business model—one closely mirrored by Swiggy in the Indian market.
As Swiggy prepares for its public debut, Meituan isn’t alone in offloading its shares. Investors including Elevation Capital and Norwest have also recently reduced their holdings, likely motivated by Swiggy’s IPO-driven valuation potential. Prosus and Accel, among Swiggy’s largest shareholders, may similarly explore secondary sales ahead of the listing, according to industry reports.
The timing of Meituan’s sale coincides with a momentous period for Swiggy. The platform’s upcoming IPO is expected within the next three weeks, with plans to raise $450 million through a fresh share issuance alongside an offer for sale (OFS). Swiggy’s latest financials indicate a robust 36% revenue increase, reaching Rs 11,247 crore in FY24, with net losses significantly reduced by 44% to Rs 2,350 crore, highlighting the company’s path to profitability.
Swiggy’s primary competitor, Zomato, reached profitability in FY24 and has demonstrated impressive post-IPO growth. Fueled by strong performance from its BlinkIt rapid commerce division and food delivery unit, Zomato’s revenue rose to Rs 12,114 crore, propelling its market capitalization to an impressive $27.3 billion, a notable climb from its $13 billion valuation at listing in July 2021.
While Meituan and Swiggy have yet to comment on the transaction, the move underscores a period of shifting stakeholder dynamics as Swiggy positions itself for public market entry.
