When Swiggy IPO is Coming and Growth Ambition
Swiggy, the popular food delivery company headquartered in Bengaluru, has received the green light from its shareholders for its upcoming initial public offering (IPO), as per a report by the Economic Times (ET) based on regulatory filings. The company aims to raise a substantial amount of funds through its IPO, with plans to secure up to ₹3,750 crore ($450 million) in fresh capital, in addition to an offer-for-sale (OFS) component valued at up to ₹6,664 crore ($800 million), as detailed in the ET report.
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The shareholders of Swiggy have granted their consent for the creation, issuance, and transfer of equity shares totaling ₹37,501 million through a fresh equity share issuance and an offer for sale of equity shares worth ₹66,640 million by certain existing shareholders, as per the filing cited in the ET news report. The company’s pre-IPO round reportedly involves a fundraising target of approximately ₹750 crore from anchor investors, although Swiggy is yet to submit its IPO filings to the Securities and Exchange Board of India (SEBI), the country’s capital markets regulator.
Swiggy’s extraordinary general meeting (EGM) held on April 23 saw the passing of a special resolution related to the IPO. The company’s shareholding pattern reveals that Dutch-listed Prosus holds a significant 33% stake in Swiggy, making it the top investor, followed by SoftBank. Other notable shareholders include Tencent, Accel, Elevation Capital, Meituan, Norwest Venture Partners, DST Global, and several others.
According to data from Tracxn, Swiggy’s co-founders, Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, possess ownership stakes of 4.2%, 1.6%, and 1.2% in the company, respectively. Jaimini transitioned from his operations role in 2020 to join Pesto Tech, a new startup, as per the ET report.
In terms of financial performance, Swiggy reported a revenue of ₹8,265 crore for the fiscal year ending in March 2023, representing a notable 45% increase from the previous fiscal year. However, the company’s net loss also saw a growth of 15% to reach ₹4,179 crore, indicating the competitive and evolving landscape of the food delivery industry.
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When Swiggy IPO is Coming and Growth Ambition, The shareholder approval for Swiggy’s IPO underscores the company’s strategic growth plans and the confidence of its investors in its future prospects. As Swiggy gears up for its public listing, all eyes will be on its performance in the dynamic and competitive market it operates in.
