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- Swiggy, India’s food-delivery giant, is spicing things up in the stock market with its anticipated billion-dollar IPO.
- The Bengaluru-based startup is poised to file for its domestic initial public offering (IPO) any day now.
- Let’s dig into what’s going on…
Swiggy’s big IPO leap
Word on the street is that Swiggy’s upcoming IPO might fetch more than $1 billion.
The company is still awaiting the green light from India’s Securities and Exchange Board (Sebi), but plans are in motion.
Taking the pre-filing IPO route
Swiggy took the pre-filing route with SEBI in April this year.
This nifty method, introduced by SEBI in November 2022, lets companies submit their Draft Red Herring Prospectus (DRHP) without immediately bringing it to public notice.
According to Bloomberg’s insiders, the details of Swiggy’s IPO, including its size and timing, are yet to be decided and could change before they’re served to the public.
How much is Swiggy anticipated to raise
Swiggy’s initial plans aimed for a fresh equity issue worth INR 3,750 Cr ($450 million) with an additional offer-for-sale component of INR 6,664 Cr.
However, recent reports suggest that the company is looking for a shareholder green light to raise INR 5,000 Cr ($600 million) through fresh shares, bringing the total IPO value to a whopping $1.4 billion!
With an extraordinary general meeting (EGM) scheduled for October 3, shareholders are expected to give the nod to this plan.
And just like that, Swiggy could be making a bigger splash than originally anticipated.
Also read: Zomato raised $1.26 Bn in IPO and now Co-founders are calling it quits.
Swiggy’s financial growth
Swiggy recently shared its financial performance for the year ending March 2024, showing a 36% jump in operating revenue to ₹11,247 crore.
Even more impressive is how the company has trimmed its net losses by 44%, now standing at ₹2,350 crore.
And the stakes just got higher.
About Swiggy
Based in Bangalore, Swiggy is an Indian online food ordering and delivery platform. Founded in 2014 it operates in over 580 cities across India and has partnerships with over 150,000 restaurants.
In addition to food delivery, Swiggy offers quick commerce services through Swiggy Instamart and same-day package delivery via Swiggy Genie.
Revenue: Swiggy saw its revenue surge by 36%, climbing from ₹8,265 crore in FY23 to ₹11,247 crore in FY24, as reviewed by Moneycontrol.
Leadership:
- CEO – Sriharsha Majety
- COO – Sairam Krishnamurthy
- CFO – Rahul Bothra
- CTO – Madhusudhan Rao
- Chief Growth & Marketing Officer – Ashwath Swaminathan
Investors:
Swiggy has 57 institutional investors including,
- Prosus: Owns about 33% of the company
- SoftBank: Owns 8% of the company
- Accel: Owns 6.2% of the company,
- Elevation Capital: Owns 4.4% of the company
- DST Global: Owns 4.90% of the company
What’s at stake for Swiggy? A chance to outshine its biggest rival, Zomato, which is already listed on the stock market. Let’s see how Zomato fared after its IPO debut.
Zomato files its DRHP
Zomato filed its draft red herring prospectus (DRHP) with India’s Securities and Exchange Board (SEBI) on April 28, 2021.
The company aimed to raise ₹8,250 crore ($1.1 billion) through its initial public offering (IPO).
According to the filing, Zomato had offered equity shares totalling ₹8,250 crores, with ₹7,500 crore coming from a fresh issue and ₹750 crore as an offer for sale from existing investor Info Edge.
Zomato’s smashing stock market debut
Zomato made an unforgettable debut on July 23, 2021, shaking up Dalal Street with a thunderous start.
Zomato’s shares opened at ₹116 on the NSE, a jaw-dropping 52.63% premium over its issue price of ₹76.
Over on the BSE, it started at ₹115, and by the end of the day, it was sitting comfortably at ₹125.85—a scorching 65.59% higher than its initial offer price. Talk about a grand entrance!
The stock’s intraday high hit ₹138, setting the stage for Zomato’s market capitalization to break through the ₹1 lakh crore barrier. Yes, that’s over ₹1 trillion!
Why Zomato’s IPO was a success
With ₹9,375 crore at stake, Zomato’s offering saw a phenomenal 38.25x subscription, the best response for any IPO over ₹5,000 crore in the last 13 years.
A mix of bullish market sentiment, Zomato’s track record of snatching market share, and improved financial outlook drove the hype.
About Zomato
Founded in 2010, Zomato connects customers, restaurants, and delivery partners through its technology platform.
Not only does it serve up food delivery and dining-out options for consumers, but it also empowers restaurant partners with marketing tools and high-quality ingredients through its Hyperpure business.
Revenue – In Q4 of FY24, Swiggy reported a consolidated revenue of ₹3,562 crore, marking a 73% year-on-year (YoY) growth from ₹2,056 crore in the same period last year.
Leadership
CEO – Deepinder Goyal
CFO – Akshant Goyal
Marketing Head – Sahibjeet Singh Sawhney
Wrapping up
India has already seen $7.8 billion raised in IPOs this year, surpassing the previous two years combined.
As Swiggy gears up for its public debut, the spotlight is on how this food-delivery behemoth will fare in the stock market.
