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Swiggy Sets Stage for Rs. 11,664 Crore IPO Amid Revenue Surge and Expansion Plans

Published 06-10-2024, 08:20 am
© Reuters.

Swiggy, one of India’s largest foodtech platforms, is gearing up for a massive initial public offering (IPO) that could raise up to INR 11,664 crore ($1.4 billion), making it one of the largest new-age IPOs in the country.

The company has received shareholder approval to increase the size of its primary issue by INR 1,250 crore, boosting the total from INR 3,750 crore to INR 5,000 crore, during an extraordinary general meeting on October 3. However, the offer for sale (OFS) component remains unchanged at INR 6,664 crore.

According to its draft prospectus, Swiggy plans to utilize the net proceeds from the IPO to repay borrowings, invest in its subsidiary Scootsy, and expand its dark store network for its quick commerce segment.

Additionally, the funds will be used to enhance the company’s technology and cloud infrastructure. This move comes at a time when the company is facing tough competition from the likes of Zomato (NS:ZOMT), Blinkit, Flipkart Minutes, Zepto, Tata BigBasket, and so on.

Swiggy’s IPO is expected to hit the market later this year, and the company has been preparing for this public debut for several months. Financially, Swiggy has shown notable improvements. In FY24, it reported a 36% increase in revenue, growing from INR 8,265 crore in FY23 to INR 11,247 crore. During the same period, its losses narrowed by 44%, reducing from INR 4,179 crore to INR 2,350 crore. This was largely due to better expense management and increased operational efficiency.

In the first quarter of the current fiscal year, Swiggy reported a 35% year-on-year rise in revenue, reaching INR 3,222 crore compared to INR 2,389 crore in the same period last year. With this strong financial performance, Swiggy has managed to close the gap with its primary competitor, Zomato.

In addition to its IPO plans, Swiggy has been expanding its offerings, recently launching a 10-minute meals and beverages delivery service called Bolt, which is aimed at capturing the quick commerce segment.

Amidst Swiggy’s IPO preparations, 13 other companies, including Vikram Solar, Aditya Infotech, and Varindera Constructions, have also filed their IPO papers. These firms are expected to collectively raise around INR 8,000 crore, indicating a busy IPO season ahead across multiple sectors in India.

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