Swiggy's IPO: Shareholders greenlight $1.2 billion public offering for the food delivery giant

Swiggy IPO: Bengaluru-based Swiggy's initial public offering (IPO) has been approved by shareholders

The food and grocery delivery business intends to raise up to Rs 3,750 crore (450 million USD) of fresh capital, in addition to an offer-for-sale (OFS) component worth up to Rs 6,664 crore (800 million USD).

Subject to the approval and consent of the shareholders of the Company, its shares for an aggregate value of INR 37,501 million shall be created, issued, offered, allotted and/or transferred by way of fresh issue of equity shares and/or offered for sale. . Number of shares worth a total of INR 66,640 million by some existing shareholders.

Swiggy is reportedly seeking around Rs 750 crore from anchor investors. Swiggy is yet to file its IPO applications with the Securities and Exchange Board of India (SEBI), the country's capital markets regulator.

The special resolution was passed at Swiggy's Extraordinary General Meeting (EGM) on April 23.

Shareholding Pattern

Netherlands Stock Exchange-listed Prosus, which holds a 33% stake in Swiggy, is the largest investor in the company, followed by SoftBank. Other shareholders include: Tencent, Accel, Elevation Capital, Meituan, Norwest Venture Partners, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC.

Data platform Tracxn reports that the company's co-founders, Sriharsha Majety, Nandan Reddy, and Rahul Jaemini, own 4.2%, 1.6%, and 1.2% of the company, respectively. In 2020, Jaimini left his operating position to work at Pesto Tech, a new startup.

Financials 

Swiggy reported revenue of INR 8,265 crore for the financial year ending March 2023, an increase of 45% over FY22. Its net loss also rose by 15% to INR 4,179 crore.

FAQ’s

Q.What is the valuation of Swiggy IPO?

A.Ahead of its much-awaited IPO, Invesco recently increased Swiggy's valuation to $12.7 billion from $8.5 billion in October 2023, marking an increase of more than 49 per cent in about only six-months.

Q.Has Swiggy ever made profit?

A.Swiggy became profitable in March 2023 and has left Zomato behind. In this revolutionary milestone, Swiggy has become one of the few companies in the food delivery industry to become profitable.

Q.Who is CEO of Swiggy?

A.Sriharsha Majety

Q.Who invested in Swiggy?

A.In July 2021, Swiggy raised $1.25 billion from SoftBank, Prosus, and other investors, at a valuation of $5.5 billion. In January 2022, Swiggy's valuation rose to $10.7 billion after a $700-million fundraise led by US asset manager Invesco.

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