Swiggy, India’s leading food delivery and quick commerce firm, is set to embark on a significant fundraising effort with a fresh issue of up to Rs 5,000 crore ($602 million) as part of its initial public offering (IPO). This decision comes on the heels of the company’s strong financial growth, with revenue increasing by 36% year-on-year to Rs 11,247 crore in FY24, and a reduction in losses by 44% to Rs 2,350 crore in the same period.
The IPO, which has been anticipated since April, is expected to be one of the largest this year, against the backdrop of several other notable startups from Delhi NCR and Bengaluru that have already made their stock exchange debuts. Bengaluru-based companies like Digit Insurance and Ola Electric have already listed this year.
Swiggy’s strong financial performance and increased focus on its quick commerce arm, Instamart, which saw a gross revenue increase to Rs 1,100 crore in FY24, are perceived as drivers for its ambitious fundraising plans. Notably, the company has already demonstrated a willingness to invest heavily in its quick commerce platform, with a $700 million investment in December 2021 to compete with rivals like Zepto and Zomato’s Blinkit.
The Bengaluru-based food tech firm plans to seek shareholder approval for the fresh issue and offer for sale (OFS) at an extraordinary general meeting (EGM) on October 3. While the initial draft papers filed in April suggested a fundraising target of Rs 3,750 crore via a fresh issue, the latest resolution to issue up to Rs 5,000 crore is significantly larger, indicating a potential increase in the company’s overall fundraising plans. Swiggy may also list investors like Baron Capital, which has valued the company at $14.5 billion.
Swiggy has also secured strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites in recent times. The company has seen significant interest from investors due to its robust growth, as evident from the valuation it received from Baron Capital.