Swiggy, the food delivery and quick commerce company, has filed updated paperwork for its Initial Public Offering (IPO). It means that they are preparing to go public by offering company shares to the public. Swiggy aims to raise Rs 3750 crore through an IPO by issuing new shares, targeting a $10 billion market valuation. It is referred to as the ‘Fresh Issue.’ This could be among one of India’s biggest listings this year.
Swiggy IPO Size To Exceed Over Rs 10,000 Crore
Market regulator SEBI (Securities and Exchange Board of India) had sent clearance for the IPO to Swiggy on Wednesday. The company replied on Thursday that it aims to raise Rs. 3750 crore through the public offering.
In its updated draft prospectus, the Bengaluru-based company mentioned about the existing investors. The draft said Tencent Europe and Accel India will sell about 18.5 crore shares through an offer for sale (OFS). With this OFS, the total IPO size is expected to exceed Rs. 10,000 crore.
Swiggy Founded In 2014
Swiggy is a company established in 2014. It is supported by Japan’s Softbank and investment firm Prosus. It was valued at nearly $13 billion as of April this year. Currently, the company employs over 4,700 people.
As reported by the news agency Reuters, it claims Swiggy’s IPO is happening during a surge in the IPO market. By September 4, around 198 companies had raised $7.1 billion. It is supposed to be more than twice the amount raised during the same time last year.
According to the news agency PTI, Rs. 137.41 crore from the fresh issue will go towards payment of the debt of Swiggy’s subsidiary, Scootsy. Moreover, Rs. 982.4 crore will be invested in expanding Scootsy’s dark store network for its quick commerce business. Rs. 559.1 crore will be set aside for establishing new dark stores and the rest for lease or license payments. Here, a dark store refers to a warehouse that is used to pack and deliver online orders quickly. It helps Swiggy speed up deliveries.
Investment In Technology
According to reports, Swiggy is also planning to invest Rs. 586.2 crores in technology and cloud infrastructure. Rs. 929.5 crore in brand marketing and business promotions. Some funds will be reserved for acquisitions and general corporate purposes.
Swiggy’s main rival, Zomato, went public in the year 2021. Its shares have been some of the best performers over the past 12 to 15 months.
The updated DRHP shows major financial improvement for FY24. The company cut its losses by 43%, reducing them to Rs. 2,350 crores. This was due to strong growth in food delivery and its Instamart quick-commerce services. The revenue of the company grew by 36%; it reached Rs. 11,247 crore, compared to Rs. 8,264 crore in FY23.
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