At an Extraordinary General Meeting (EGM) on October 3, the leading food technology company Swiggy got approval from its shareholders to boost the primary issue size of its Initial Public Offering (IPO) from Rs 3,750 crore to Rs 5,000 crore.
If additional cash is needed, the corporation has set aside an additional Rs 1,250 crore for the larger IPO. Remarkably, the offer for sale (OFS) component is still Rs 6,664 crore.
The Bengaluru-based company’s IPO is expected to be one of the biggest new-age offerings in India when it debuts on the public market. If the IPO size is expanded further, it may reach an aggregate value of Rs 10,414 crore ($1.25 billion) or Rs 11,664 crore ($1.4 billion).
The choice to expand the IPO was made because Swiggy is up against fierce competition from other successful modern businesses, such as Zomato, Flipkart Minutes, Tata BigBasket, and Blinkit, which Zomato owns. Swiggy has been getting ready for its public market debut for a few months now in anticipation of its IPO later this year.
Swiggy’s losses shrank in FY24, while sales surged significantly, closing the gap with Zomato, Swiggy’s fiercest competition. From Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24, the company’s revenue increased by 36%. Stronger cost control helped Swiggy’s losses drop by 44% over that time, from Rs 4,179 crore to Rs 2,350 crore.
Swiggy spent a total of Rs 3,908 crore in Q1 FY25 compared to Rs 3,073 crore in the same time the previous fiscal year, a 27% increase. During the April-June quarter of the current fiscal year, the company’s operating revenue was Rs 3,222.2 crore, up 35% from Rs 2,389.8 crore during the same time the previous year.
