Swiggy Secures Shareholder Approval for $1.2 Billion IPO in 2024

Swiggy, a leading Indian food delivery startup, has received shareholder approval for a $1.2 billion initial public offering (IPO) planned for April 26, 2024. The company aims to raise up to $450 million through a fresh issue of shares and up to $800 million through an offer-for-sale component from existing shareholders.

Key investors in Swiggy, including Dutch-listed Prosus with a 32% stake, SoftBank, Accel, and Elevation Capital, are set to participate in the IPO. Prosus intends to reduce its shareholding to below 25% through the offering. Co-founders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini own 4.2%, 1.6%, and 1.2% of the company, respectively.

Why this matters: Swiggy's IPO marks a significant milestone for the Indian startup ecosystem and highlights the growing investor interest in the food delivery sector. The successful listing could open the door for other Indian tech startups to go public and attract global capital.

Swiggy reported a revenue of $1.2 billion for the fiscal year ending March 2023, a 45% increase over the previous year. However, the company's net loss also grew by 15% to $600 million during the same period. For the nine months leading to December 2023, Swiggy recorded a $207 million loss against a revenue of $1.02 billion.

The company's valuation has been increased to $12.16 billion by Baron Capital and $8.3 billion by Invesco, reflecting investor confidence in Swiggy's growth potential. Swiggy also plans to raise around ₹750 crore from anchor investors ahead of the IPO.

In preparation for the public listing, Swiggy has appointed CEO Sriharsha Majety as an executive director and managing director, while co-founder Nandan Reddy has been named a whole-time director and head of innovation.

"The shareholder approval marks a significant milestone for Swiggy as it sets out on its path towards a public listing," a company spokesperson said. The IPO will provide Swiggy with the necessary funds to further develop its platform, enhance its delivery services, and potentially explore new business opportunities within the food delivery industry in India.

Key Takeaways

• Swiggy receives shareholder approval for $1.2B IPO planned for April 2024.
• Swiggy aims to raise $450M through fresh issue, $800M through offer-for-sale.
• Swiggy reported $1.2B revenue in FY23, but $600M net loss, reflecting growth challenges.
• Swiggy's valuation increased to $12.16B by Baron Capital, $8.3B by Invesco.
• IPO will fund Swiggy's platform development, delivery services, and new opportunities.