Swiggy now plans to raise $1.4 billion via its IPO
Swiggy is contemplating a significant increase in its initial public offering (IPO). The company now plans to raise $600 million via fresh issue in place of $450 million, an increase of $150 million. This decision is pending shareholder approval at an extraordinary general meeting (EGM) scheduled for October 3. If approved, the total IPO size will increase from $1.25 billion to around $1.4 billion, with an additional $150 million coming via a fresh issue.
Swiggy seeks shareholder approval for revised IPO plans
Swiggy's meeting with its shareholders for its revised IPO plans will include discussions on both the increased fresh issue and an offer for sale by existing shareholders. The Bengaluru-based start-up is considering selling around $800 million worth of shares from existing investors in the IPO, as it seeks a valuation of around $15 billion.
Swiggy's competition
Swiggy, backed by investors such as Prosus Ventures, SoftBank, and Accel, is a dominant player in India's food delivery and quick-commerce sector. However, it faces stiff competition from rivals like Zomato, Tata-owned BigBasket, and General Catalyst-backed Zepto.
Financial growth and market position
Swiggy's revenue saw a significant increase of 36% from ₹8,265 crore in FY23 to ₹11,247 crore in FY24. Concurrently, its losses were reduced by 44% from ₹4,179 crore to ₹2,350 crore. This financial improvement is attributed to better expense management during the year, as the company prepares for its stock market debut later in 2024.
