Swiggy, the food delivery and quick commerce company, is preparing for an initial public offering (IPO) with plans to raise Rs 5,000 crore ($602 million) through a fresh issue of equity shares. The Prosus-backed firm has also targeted raising Rs 6,664 crore through an offer for sale (OFS) and is set to seek board approval for the OFS in early October. This move comes as part of Swiggy’s broader strategy to secure a total of Rs 10,400 crore, combining both the fresh issue and the OFS.
The company’s IPO plans have been in the works since confidentially filing draft papers in April, and the latest special resolution indicates a 1.3X increase in the fresh issue amount compared to the initially planned Rs 3,750 crore. Swiggy is expected to file its draft red herring prospectus (DRHP) with SEBI soon. Ahead of the IPO, Swiggy attracted strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites, with investor Baron Capital valuing the company at $14.5 billion.
Swiggy reported significant financial growth in FY24, with a 36% year-on-year increase in revenue to Rs 11,247 crore and a 44% reduction in losses, bringing them down to Rs 2,350 crore. The core food delivery business contributed Rs 6,100 crore to total revenue, while its quick commerce segment, Instamart, generated Rs 1,100 crore in gross revenue. To strengthen its position against competitors like Zepto and Zomato’s Blinkit, Swiggy invested $700 million in quick commerce in late 2021 and recently appointed new leadership for Instamart.
Swiggy’s IPO is part of a broader trend of Bengaluru-based companies entering the stock market in 2024, following a series of IPOs from Delhi NCR. Other notable IPOs from the city include Digit Insurance and Ola Electric. Ather Energy, another Bengaluru-based company, has also filed its draft IPO papers, although its major stakeholder, Hero MotoCorp, opted not to participate in the OFS.