Swiggy, the prominent food delivery and quick commerce company, is gearing up to raise ₹5,000 crore (approximately $602 million) through a fresh issue as part of its Initial Public Offering (IPO). The company, backed by Prosus, also aims to secure ₹6,664 crore via an offer for sale (OFS), with board approval expected early next month.
According to an internal document obtained by Entrackr, Swiggy’s board has passed a resolution for the issuance of equity shares worth up to ₹5,000 crore, pending shareholder approval at an Extraordinary General Meeting (EGM) on October 3. The company’s IPO plans have been underway since filing draft papers confidentially in April, and recent reports suggest shareholder approval for a total raise of ₹10,400 crore (₹3,750 crore from the fresh issue and ₹6,664 crore through the OFS).
However, the IPO size may change, with the fresh issue now estimated at 1.3X the previous ₹3,750 crore. The Bengaluru-based company is expected to file its draft red herring prospectus (DRHP) with SEBI shortly.
Swiggy’s IPO preparations include strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites. The company was recently valued at $14.5 billion by Baron Capital. Swiggy has shown impressive financial performance, with a 36% revenue growth in FY24, reaching ₹11,247 crore, and a 44% reduction in losses to ₹2,350 crore. Its food delivery segment contributed ₹6,100 crore, while its Instamart quick commerce arm generated ₹1,100 crore in revenue.
To stay competitive, Swiggy invested $700 million in quick commerce in 2021 and recently made key leadership changes at Instamart. Following a wave of IPOs from startups in Bengaluru and Delhi NCR, Swiggy is expected to file its DRHP soon, alongside other local firms like Ather Energy.