India’s foodtech giant Swiggy has filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at approximately INR 10,000 Cr ($1.2 billion).
The public issue will consist of a fresh issue worth INR 3,750 Cr ($450 million) and an offer for sale (OFS) of 18.53 Cr equity shares.
The OFS component, priced around INR 350 per share, is expected to generate approximately INR 6,485 Cr.
Notable investors, including Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent, will sell shares through the OFS.
Accel India IV (Mauritius) Ltd plans to offload 1.05 Cr shares, while Alpha Wave Ventures will sell 55.73 lakh shares.
The IPO follows reports of SEBI’s approval of Swiggy’s DRHP via the confidential pre-filing route, positioning the company to list on India’s National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
IPO Proceeds and Future Plans
Swiggy intends to use the fresh IPO proceeds to fuel growth across multiple verticals.
About INR 929.5 Cr will be allocated for marketing and promotional activities, while INR 982.4 Cr will support its quick-commerce subsidiary, Scootsy, for expanding dark stores and covering lease payments.
Scootsy Logistics, a subsidiary of Swiggy, will further develop its supply chain services to serve wholesalers and retailers with warehouse management, processing, and order fulfillment.
Swiggy’s book-running lead managers include Kotak Mahindra Capital, JP Morgan India, BofA Securities, Citigroup Global, and Jefferies.
Performance Overview and Competitive Landscape
Despite widening net losses by over 7% to INR 605.7 Cr in Q1 FY25, Swiggy saw a 35% rise in revenue, reaching INR 3,222.2 Cr, compared to INR 2,389.8 Cr in the same period last year.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, Swiggy began as a food delivery platform but has since ventured into quick commerce with Instamart, competing with rivals like Zomato.
The IPO comes at an exciting time, aligning with the growing momentum for tech IPOs in India, following successful listings by companies like Unicommerce and Ola Electric.
Swiggy’s pre-IPO investors include prominent figures like Amitabh Bachchan, Madhuri Dixit, Rahul Dravid, and Karan Johar.
