Swiggy, the popular Bengaluru-based food and grocery delivery platform, has secured shareholder approval to launch an initial public offering (IPO) aiming to raise a substantial $1.2 billion. The IPO is structured to raise $450 million through the issuance of new shares and an additional $800 million through an offer for sale, according to company filings.
While Swiggy has not yet filed its IPO papers with the Securities and Exchange Board of India (SEBI), it is reportedly planning to raise an additional $90 million from anchor investors in a pre-IPO funding round. This move comes as part of a larger trend of Indian startups, such as Firstcry, Ola Electric, and Awfis, making their transition to public markets.
The shareholder’s approval includes the creation and allotment of equity shares totaling approximately Rs 37,501 million ($450 million) and permits the sale of existing shares by current shareholders up to Rs 66,640 million ($800 million).
Prosus, a global consumer internet group and one of the largest technology investors in the world, remains Swiggy’s largest shareholder with a 33% stake. Other prominent investors include SoftBank, Accel, and Tencent, among others. Swiggy’s co-founders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini hold 4%, 1.6%, and 1.2% stakes respectively.
During an extraordinary general meeting held on April 23, Sriharsha Majety was confirmed as the managing director and group CEO, while Nandan Reddy was named the head of innovation. This leadership consolidation is expected to strengthen Swiggy’s market position as it prepares for its IPO.
Despite its rapid growth, Swiggy reported a 45% increase in operational revenue for the fiscal year ending March 2023, totaling Rs 8,265 crore. However, the company also saw its net losses increase by 15% to Rs 4,179 crore.
Investors like Invesco and Baron Capital have recently reassessed Swiggy’s valuation, with estimates reaching as high as $12.7 billion. This valuation reflects the significant interest and potential investors see in Swiggy as it gears up to go public, highlighting the robust appetite for new-age tech companies on the stock market.
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