Indian food delivery giant Swiggy has secured shareholders’ approval for a potential Rs 10,414 crore ($1.25 billion) initial public offering (IPO), The Economic Times reported on Thursday. Swiggy’s potential IPO is expected later this year.
The Bengaluru-based company plans to raise Rs 3,750 crore ($450 million) through fresh issuance of shares, the report citing filings made with the Registrar of Companies noted. It plans to further raise Rs 6,664 crore ($800 million) via an offer-for-sale (OFS) by existing investors, it added.
Founded in 2014, Swiggy has taken a unique approach to its IPO filing process. The company opted for the confidential filing route with SEBI, the Indian market regulator. This allows Swiggy to keep details about its business undisclosed to the public until a later stage.
Meanwhile, Swiggy’s financial performance paints a mixed picture. The company’s revenue from operations grew 45% to Rs 8,265 crore in financial year ended March 2023, the report noted. However, its net loss also increased by 15% to Rs 4,179 crore during the same period. Recent reports indicate a loss of around Rs 1,730 crore for the nine months ending December 2023, with revenue hovering around Rs 8,490 crore. Swiggy opeartes in more than 500 Indian cities.
To improve its financial standing ahead of the IPO, Swiggy has been focusing on cost-cutting measures, including shutting down experimental ventures and employee layoffs. This focus on profitability is crucial, especially since its rival Zomato has achieved profitability in the last three quarters.
This move comes amidst a booming Indian startup ecosystem where companies are increasingly seeking public markets. Swiggy’s IPO plans follow its competitor Zomato’s successful listing in 2021. Zomato, with a current market capitalization of over $19.5 billion, holds a slight lead in the food delivery market share. Both companies are also battling it out in the fast-growing quick commerce segment, with their respective services Instamart and Blinkit facing stiff competition from newcomer Zepto.
