Swiggy IPO: Food and grocery delivery makes confidential filing with Sebi
Swiggy's shareholders approved its $1.25 billion IPO in an EGM in a special resolution on April 23.
In Short
- Swiggy files draft documents for IPO with SEBI
- Approval by shareholders for $1.25-billion public issue
- Intends to raise up to Rs 3,750 crore through fresh equity shares
Swiggy has filed draft documents for its initial public offering (IPO) with the Securities and Exchange Board of India (Sebi).
The company has submitted a confidential filing, according to media reports, which means that detailed draft red herring prospectuses (DRHPs) in this category do not need to be made public.
Although IndiaToday.in could not independently verify these reports, the development follows the approval by Swiggy's shareholders for a $1.25-billion public issue.
This includes the offering of 450 million new shares and an $800-million offer-for-sale (OFS) by existing shareholders.
At an extraordinary general meeting held on April 23, a special resolution was passed by Swiggy.
The company, based in Bengaluru, intends to raise funds of up to Rs 3,750 crore through the issuance of fresh equity shares, alongside an offer-for-sale of up to Rs 6,664 crore.
Reports suggest that Swiggy is seeking to secure approximately Rs 750 crore from anchor investors through a pre-IPO round.
During the meeting, Swiggy appointed co-founders Sriharsha Majety and Nandan Reddy as executive directors. Majety has been designated as managing director and group CEO.
Swiggy's main competitor in the food delivery sector, Zomato, went public in 2021. According to a note from Bernstein in January, Zomato commanded a market share of about 54% in food delivery by gross merchandise value in the first half of 2023, with Swiggy holding the remaining share.
Swiggy's investors include Prosus, Accel, SoftBank, and Invesco, among others. The company was valued at $10.7 billion following a $700-million funding round in 2022.
A recent Reuters report indicated that Swiggy recorded a loss of $200 million on revenues of $1.02 billion for the nine months ending December 2023, as per an internal document.
Established in 2014, Swiggy was valued at USD 12.7 billion as of April 10, 2024. Its annual revenue amounted to USD 1.09 billion as of March 31, 2023. According to Tracxn, a global startup data platform, Swiggy has more than 4,700 employees.