Swiggy IPO is set to grow significantly as the company plans to increase its fresh issue of shares, raising additional capital. Initially, Swiggy aimed to raise Rs 3,750 crore (approximately $450 million) through the fresh issue but now intends to issue shares worth Rs 5,000 crore (about $600 million). This adjustment adds Rs 1,250 crore (around $150 million) to the original target, preparing the company for intensified competition in the market.
With this change, Swiggy’s total IPO size will rise to about $1.4 billion, up from the initial estimate of $1.25 billion. The additional $150 million will come from the fresh issue, while the offer-for-sale (OFS) component remains unchanged. The company’s board will review this proposal at an extraordinary general meeting on October 3.
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Swiggy’s move comes as its competitors, including Zomato and Blinkit, have seen improved profitability and increased market capitalization. Rivals such as Zepto have recently raised $1 billion, adding pressure in the quick commerce sector. Larger players like Walmart have also entered the rapid delivery market through Flipkart Minutes.
Despite trailing Zomato in various metrics, Swiggy has shown financial improvement. Its revenue grew by 36%, from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. At the same time, its losses decreased by 44%, falling from Rs 4,179 crore to Rs 2,350 crore due to better expense management.
In comparison, Zomato reported revenue of Rs 12,114 crore and a profit of Rs 351 crore for FY24, surpassing Swiggy’s figures.
