Swiggy is set to launch its ₹10,414 crore IPO after receiving approval from SEBI. The offering includes a mix of ₹3,750 crore worth of fresh shares and an offer-for-sale component of 18.52 crore shares, valued at ₹6,664 crore. The IPO marks a significant moment for the company.
Last week, Swiggy shareholders approved an increase in the primary issue size from ₹3,750 crore to ₹5,000 crore at the company’s extraordinary general meeting. Notable investors offloading their shares in the offer-for-sale include Accel India IV (Mauritius) Ltd, Alpha Wave Ventures, LP, and Tencent Cloud Europe BV, among others.
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Zomato CEO Deepinder Goyal expressed optimism about Swiggy’s IPO, noting that the listing of another food tech company would benefit the entire industry. Swiggy also aims to raise funds through a potential pre-IPO round, which could adjust the fresh issue size accordingly.
According to Swiggy’s IPO filings, ₹137.41 crore will be allocated to repay the debt of its subsidiary Scootsy. Additionally, ₹982.40 crore is earmarked to expand Scootsy’s dark store network, which plays a crucial role in Swiggy’s quick commerce segment, showing strategic growth.
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The company also plans to invest ₹929.50 crore in brand marketing and business promotion and ₹586.2 crore in technology and cloud infrastructure enhancement. Further funds will be directed toward inorganic growth opportunities and general corporate purposes, strengthening its market presence.
Founded in 2014, Swiggy was valued at nearly $13 billion as of April 2023. The company reported an annual revenue of $1.09 billion for the fiscal year ending March 31, 2023, and employs over 4,700 people, making it one of India’s major food delivery platforms.