Swiggy IPO: Food delivery major Swiggy on Thursday submitted its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). In the updated prospectus, the food delivery major said it aims to raise Rs 3,750 crore ($448. 56 million) in its initial public offering, which looks set to be among India's biggest listings in 2024 so far. The fresh issue component is for Rs 3,750 crore while the offer for sale would comprise 18.52 crore shares.
Investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent will be selling shares and decreasing their stake in the company in order to accommodate new investors who believe in the company's long-term growth prospects and wish to diversify their portfolios beyond Zomato.
Prosus holds a 32% stake, while SoftBank and Accel each hold 8% and 6% stakes in Swiggy, respectively. Additionally, Elevation Capital, DST Global, Norwest, Tencent, Qatar Investment Authority (QIA), and Singapore’s GIC are among the other stakeholders invested in the company.
Kotak Mahindra Capital Co., Citigroup Global Markets India, Jefferies India, and Avendus Capital have been appointed as the bankers for the offering.
Founded in 2014, Swiggy partners with more than 150,000 restaurants across India. Swiggy successfully decreased its losses by 43%, amounting to Rs 2,350 crore in FY24, primarily due to the rapid growth in its food delivery and quick commerce segments.
The revenue from operations saw a notable 36% increase, reaching Rs 11,247 crore. The company's consumer-facing business, which consists of food delivery, Instamart, and dining services, reported a gross order value (GOV) of Rs 35,000 crore, driven by 14.3 million monthly transacting users.