Swiggy Gets SEBI Approval for IPO, Eyes $15 Billion Valuation
Mumbai: Swiggy, a well-known food delivery business, may now proceed with its initial public offering after receiving approval from the Securities and Exchange Board of India (Sebi). According to people comfortable with the situation this year, the company filed for a private initial public offering (IPO) earlier in the year, which is when the development took place.
Before Swiggy can launch its much-anticipated roadshow for an initial public offering (IPO), it is required to submit a revised Red Herring Prospectus (DRHP); this update, people testified, requested they are not named.
Swiggy’s IPO to Follow Zomato’s Success
Nearly three years have passed since Zomato, Swiggy’s primary rival, went public. Zomato, funded by SoftBank, saw an increase in shares as well; it is currently selling at four times its ₹76 starting offer price.
As part of its public listing, Swiggy is anticipated to purchase additional shares in addition to an offer for sale (OFS). The company is reportedly seeking a valuation of about $15 billion, however this figure may fluctuate before the roadshow.
Key Shareholders and IPO Structure
Some of the early investors, such as Prosus Ventures, Norwest Venture Partners and Goldman Sachs, are expected to sell part of their holdings in the $1.25 billion IPO It’s going to keep
Swiggy’s early investments included Norwest and Prosus; Goldman Sachs joined in 2021, and the company was then valued at $5 billion.SoftBank joined the group in 2022.
Financial Performance and Growth Prospects
Swiggy’s impressive growth in its food distribution and express trade businesses contributed to a significant reduction in its losses, which fell 43% to ₹2,350 crore in FY24 During the same period, the company’s performance revenue rose 36% to ₹11,247 crore.
With a dedication to tracking 14.3 million monthly transactional customers, Swiggy’s consumer-facing business—which includes food delivery, Instamart and catering—reported a total order value of ( GOV) is ₹35,000 crore
Instamart, Swiggy’s fast commerce division, reported total revenue of ₹1,100 crore in FY24, compared to ₹2,301 crore from competitor Blinkit. For the year, Instamart’s GOV was ₹8,100 crore and Blinkit’s was ₹12,469 crore.
With the company eyeing to strengthen its position against competitors such as Blinkit, Zepto and BigBasket in the rapidly expanding retail space, the company intends to use a large portion of the IPO funds for Instamart expansion.
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