 "Rahul Dravid, Zaheer Khan, Karan Johar invest in Swiggy ahead of IPO launch")
Celebrities from entertainment, sports, and business are backing food and grocery delivery platform Swiggy in the unlisted market as it approaches its IPO, despite facing stiff competition from rivals such as Zomato and Zepto, according to a report by The Economic Times.
Recently, Swiggy’s shares intended for the IPO were actively traded in the unlisted market, with around 200,000 shares reportedly purchased by notable figures, the report said.
Prominent investors join the bandwagon
Among the prominent investors in Swiggy are cricketers Rahul Dravid and Zaheer Khan, tennis player Rohan Bopanna, filmmaker Karan Johar, and actor-entrepreneur Ashish Chowdhry.
The report quoted Ashish Chowdhry, founder of Disrptve Ventures and an actor, as saying that Swiggy has changed the food delivery scene in India, and being part of its growth journey is expected to offer substantial financial rewards. “The company’s consistent innovation, spanning from food delivery to grocery services, has been instrumental in maintaining its competitive advantage in the industry,” he said.
Earlier, Swiggy attracted investments from Bollywood actors and entrepreneurs, including Madhuri Dixit Nene, Amitabh Bachchan, and Ritesh Malik, the founder of Innov8, during its pre-IPO funding rounds via the secondary market.
The report quoted former India cricket player Zaheer Khan saying, “This investment isn’t just about high growth potential, but also about backing a brand that’s shaping the future of urban living and consumer convenience in one of the world’s fastest-growing markets.”
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Investments in high-potential startups
The interest shown by people from sports and entertainment in Swiggy’s pre-IPO shares highlights a broader trend of high networth individuals diversifying their portfolios by investing in high-potential tech startups, according to an insider familiar with the transactions, as mentioned by the report.
With its strong market presence and innovative services like Swiggy Instamart, Swiggy represents a promising opportunity for investors eager to benefit from the flourishing food tech sector.
Analysts said that celebrities are particularly attracted to pre-IPO investments due to their significant upside potential once a company goes public. Zomato’s stock market debut in 2021 witnessed immense demand, with shares soaring on listing day, providing early investors with lucrative exits.
This upcoming IPO follows a series of successful fundraising efforts by Swiggy, attracting capital from renowned global venture capital firms such as SoftBank Vision Fund, Accel, and Prosus. Additionally, the company has secured funding through secondary markets, drawing a varied group of investors. Notably, Motilal Oswal Financial Services chairman Raamdeo Agrawal has also purchased a stake in Swiggy, along with Hindustan Composites, a manufacturer of automobile materials, the report said.