Swiggy, the Bengaluru-based food delivery giant, has taken a significant step towards its IPO dreams, with shareholders greenlighting a substantial $1.2 billion public offering during the company’s Extraordinary General Meeting (EGM) held on 23 April.
The IPO will consist of:
- A fresh issue of shares worth ₹3750 crore ($450 million) to raise new capital for the company.
- An offer-for-sale (OFS) component valued at ₹6664 crore ($800 million), allowing existing investors to sell their shares.
Additionally, Swiggy is considering a pre-IPO placement of ₹750 crore ($90 million) to attract anchor investors before the public offering.
Swiggy’s Valuation and Investors
Swiggy’s IPO undertakings follow a significant valuation boost reported earlier this month by US-based Invesco, a key player in Swiggy’s funding. Invesco, which headed a $700 million funding round for Swiggy, marked up the value of its stake in the food delivery giant, further boosting investor confidence.
Dutch group Prosus emerges as the top investor in Swiggy, possessing a 33% stake in the company. Following Prosus is SoftBank with substantial investment as well. Other notable shareholders include Accel, Meituan, Elevation Capital, Norwest Venture Partners, DST Global, Tencent, Qatar Investment Authority, Alpha Wave Global, Invesco, Hillhouse Capital Group, Coatue and GIC, among others.
Executive Restructuring
During the EGM, Swiggy went through an executive restructuring, with co-founders Sriharsha Majety and Nandan Reddy assuming new roles within the company. Majety took on the role of Managing Director and Group CEO while Reddy was appointed Whole-time Director and Head of Innovation.
Performance in FY23
In the fiscal year 2022-23, Swiggy showcased high growth, with revenue from operations reaching ₹8265 crore, marking a notable 45% increase compared to FY22. However, alongside this positive revenue trend, the company also witnessed a 15% increase in its net loss, which amounted to ₹4179 crore.
Looking Forward
The launch date and price band of Swiggy’s IPO are yet to be revealed as the filing of Draft Red Herring Prospectus (DRHP) with market regulator SEBI is awaited. However, it is suggested that Swiggy’s IPO is expected to be launched later this year.
