SUMMARY
The IPO offer will comprise of a fresh issue of shares worth INR 3,750 Cr, whereas the OFS component will be worth INR 6,664 Cr
The startup is also eyeing for an Pre-IPO placement worth INR 750 Cr
Earlier this month it was reported, US-based Invesco who led Swiggy’s $700 Mn funding round, marked up the valuation of its stake in food delivery giant
Bengaluru-based food delivery giant swiggy
has secured approval from its shareholders for an initial public offering (IPO) worth INR 10,414.1 Cr ($1.2 Bn).
The startup’s IPO offer will include fresh issue shares worth INR 3,750.1 Cr (~ $449 Mn), besides offer-for-sale worth INR 6,664 Cr (~$799 Mn), as per regulatory filings.
For the uninitiated, offer-for-sale means when an existing shareholder of the company sells their shares during a public listing of a company.
Besides the IPO offer, Swiggy is also eyeing a pre-IPO round worth INR 750 Cr in consultation with its Book Running Lead Manager (BRLMs). If the pre-IPO round takes place, this will reduce the fresh issues worth to the extent of money raised during the pre-IPO round.
The Economics Times reported the development first.
However, it needs to be noted that the shareholders selling their stakes are yet unknown and will be disclosed in the company’s draft red herring prospectus (DRHP).
The fresh development comes on the heels of Swiggy converting into a public limited company. The startup’s name was changed from ‘Swiggy Private Limited’ to ’Swiggy Limited’ by deletion of the word ‘private’ from the name of the company.
News of Swiggy going public has been doing the rounds since last year. In November, last year, it was reported that Swiggy was preparing to get listed on the stock exchanges in mid-2024, in one of the biggest IPOs by an internet company with a likely issue size of $1 Bn (INR 8,300 Cr).
While at what valuation the startup intends to go public isn’t disclosed yet, lately Swiggy’s investor’s Invesco has marked up its stakes on its own book. Earlier this month it was reported that the startup, the US-based Invesco for the third time has marked up Swiggy’s fair value by 19% to $12.7 Bn.
It is pertinent to note that it was Invesco which led Swiggy’s last external funding round of $700 Mn funding in 2022. This round enabled the startup to enter the decacorn club.
As part of its preparations for the IPO, planned for later this year, Swiggy also appointed Anand Kripalu as an independent director and the chairperson of its board of directors in December last year. Kripalu was earlier the managing director and global CEO of Essel Propack Ltd. Besides this, it has appointed Sahil Barua of Delhivery, Mallika Srinivasan of TAFE as the independent directors.
In FY23, the Invesco-backed decacorn incurred a net loss of INR 4,179.3 Cr, an increase of 15% from INR 3,628.9 Cr in the previous financial year. Swiggy’s operating revenue jumped over 40% to INR 8,264.4 Cr in FY23 from INR 5,704.9 Cr in FY22 as it scaled up its quick commerce vertical during the year.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, Rahul Jaimini (left the company in 2020), Swiggy primarily started as a food delivery startup. Later, during the pandemic, it launched its quick commerce vertical – Swiggy Instamart. It also offers services like Swiggy Genie and Minis stores.
To date, the startup has raised over $3 Bn in funding and counts Prosus Ventures, SoftBank, DST Global, Alpha Wave Global, among others as its backers.
In India, Swiggy, closely competes against Delhi NCR-based and publicly listed Zomato.
