Swiggy Set to Raise $602 Million in Fresh IPO, Valuation Soars to $14.5 Billion
Food delivery and quick commerce firm Swiggy is all set to raise Rs 5,000 crore ($602 million) in a fresh issue as part of its initial public offering (IPO), in addition to seeking approval for an offer for sale (OFS) worth Rs 6,664 crore. The Bengaluru-based company has already received shareholder approval to raise a total of Rs 10,400 crore, making it one of the largest IPOs in the Indian startup ecosystem.
Swiggy’s board has passed a special resolution to issue equity shares worth up to Rs 5,000 crore, subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for October 3.
Swiggy’s IPO has been highly anticipated since the company filed draft papers confidentially in April. The firm has received strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites, and was recently valued at $14.5 billion by investor Baron Capital.
The food tech firm showcased remarkable financial growth, with a 36% year-on-year growth in revenue to Rs 11,247 crore in FY24, and a 44% cut in losses to Rs 2,350 crore in the same period. Swiggy’s food business contributed Rs 6,100 crore to its overall income, while its quick commerce arm, Instamart, generated Rs 1,100 crore in gross revenue in FY24.
Swiggy is planning to compete with rivals like Zepto and Zomato’s Blinkit by investing $700 million in quick commerce in December 2021. The company also roped in a new CEO and COO for Instamart last month.
Bengaluru is set to see a surge in startup IPOs this year, with other companies like Digit Insurance and Ola Electric already making their stock exchange debuts. Swiggy, Ather Energy, Good Glamm, and MamaEarth are among the many companies expected to go public in the coming months.
Developments to Watch:
- Swiggy’s fresh IPO size may vary as the company has received shareholder approval to raise Rs 10,400 crore in total, making it one of the largest IPOs in the Indian startup ecosystem.
- Swiggy is set to file its draft red herring prospectus (DRHP) with
