Swiggy Set For $1.2-Billion IPO As Shareholders Grant Approval

Swiggy IPO: Company plans to raise about Rs 3,750 crore through a fresh issue and Rs 6,664 crore through an offer-for-sale (OFS) component

Swiggy intends to secure around Rs 750 crore from anchor investors ahead of its IPO.

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Bengaluru-based food technology firm Swiggy has received shareholders’ approval for a $1.2 billion initial public offering (IPO), according to regulatory filings with the registrar of companies (RoC). The company plans to raise about Rs 3,750 crore (around $450 million) through a fresh issue and Rs 6,664 crore (around $800 million) through an offer-for-sale (OFS) component. Swiggy also intends to secure around Rs 750 crore from anchor investors ahead of its IPO, scheduled for earlier this year, according to filings sourced via Tofler and TheKredible.

In a regulatory filing following an Extraordinary General Meeting (EGM) on April 23, Swiggy said that it received shareholder approval to create, issue, offer, and allot equity shares amounting to up to Rs 37,501 million through a fresh issue, and up to Rs 66,640 million through certain existing shareholders' offer-for-sale.

Prominent investors such as Prosus, holding around 32 per cent of Swiggy, plan to sell shares to reduce their ownership to below 25 per cent. Other investors include SoftBank (8 per cent), Accel (6.2 per cent), the founder group (6.7 per cent), Elevation Capital (4.4 per cent), Norwest, Tencent, DST Global, and Alpha Wave.

In the EGM, Sriharsha Majety and Nandan Reddy were appointed as executive directors. Majety will serve as managing director and group CEO, while Reddy will take on the role of whole-time director and head of innovation.

As Swiggy prepares for the IPO, the company reported a $207 million loss in the nine months leading up to December 2023. This loss occurred on a revenue of $1.02 billion during the same period, compared to fiscal year 2022-23 revenue of $1.05 billion.

Swiggy, which is planning to raise nearly $1.2 billion via the IPO, currently has nearly $800 million in cash from the earlier funding round, as per sources. In the preceding fiscal year, the firm clocked a 45 per cent rise in revenue, touching Rs 8,625 crore, at the same time, its net loss also expanded to Rs 4,179 crore.