Swiggy Gears Up for Public Listing After Shareholder Approval

Swiggy, a leading Indian food delivery company headquartered in Bengaluru, is taking a significant step towards going public. The company recently secured the approval of its shareholders to launch an initial public offering (IPO) worth $1.25 billion. This move signifies Swiggy’s inching closer to becoming a publicly traded company.

Details of the IPO

Swiggy’s board of directors passed a special resolution outlining the details of the IPO. The company plans to raise funds through two methods:

• Fresh Issue of Equity Shares: Swiggy intends to raise Rs 3,750 crore (approximately $450 million) by issuing new equity shares.
• Offer for Sale: Existing shareholders will have the opportunity to sell their shares to the public, with a total value of up to Rs 6,664 crore (approximately $800 million).

This information was obtained from regulatory filings accessed by the Registrar of Companies.

Leadership Appointment

As per the filings, Swiggy has appointed Sri Harsha Majety as its new Executive Director for a three-year term, effective April 1, 2024. His compensation for the financial years 2025 and 2026 will be Rs 2.5 crore and Rs 3 crore, respectively.

Recent Developments and Financial Performance

Swiggy’s move towards an IPO comes shortly after its transition into a public entity. The company also recently made its financial figures for the first three quarters of FY24 public.

Entrackr, a news platform focused on the startup ecosystem, previously reported exclusively on both Swiggy’s conversion to a public entity and its financial disclosures.

Pre-IPO Activity and Valuation

Meanwhile, Swiggy’s wealth managers have been actively engaged in pitching pre-IPO investment opportunities to high net-worth individuals (HNIs). These HNIs are being offered a 20% discount on Swiggy shares. According to Invesco, an early backer of Swiggy, the company’s current valuation stands at $12.7 billion. It’s noteworthy that Swiggy has witnessed continuous increases in its fair market value as determined by its investors.

Financial Snapshot

Swiggy’s financial performance for FY23 revealed a revenue of Rs 8,265 crore, while incurring losses of Rs 4,179 crore. For the first three quarters of FY24, the company reported revenue from operations of Rs 5,476 crore and a loss of Rs 1,600 crore.

IPO Market Heating Up

Swiggy’s upcoming IPO is just one of several significant developments in the Indian IPO market. Earlier this week, co-working space provider Awfis and travel technology company TBO received final approval from the Securities and Exchange Board of India (SEBI) to launch their IPOs. Additionally, companies like FirstCry, Ola Electric, MobiKwik, and Unicommerce are awaiting SEBI approval after filing their Draft Red Herring Prospectuses (DRHPs).