In a move that may raise eyebrows in the tech and startup community, Swiggy, one of India's largest food delivery and quick commerce startups, is seeking a valuation of up to $11.3 billion in its initial public offering (IPO). This marks a significant 57% discount to rival Zomato's market capitalization of $26.2 billion.

Swiggy has set an IPO price band of ₹371 to ₹390 ($4.41-$4.64) per share for next month's IPO, with plans to raise $1.34 billion. The company aims to generate $535 million from fresh share issuance, with the remainder coming from existing investor exits.

The valuation may come as a surprise, given Swiggy's recent struggles in the market. The Bengaluru-based company has lost significant market share in both food delivery and quick commerce, ranking third behind Zomato's BlinkIt and Nexus-backed Zepto in the latter segment.

Despite this, Swiggy remains a major player in India's foodtech space, and its IPO will be closely watched by investors and industry observers alike. The company's ability to secure a strong valuation will depend on its ability to convince investors of its growth potential and competitive edge in a rapidly evolving market.