According to internal documents, Swiggy, the fast-food delivery and e-commerce company, is preparing to raise about $600 million through a new issuance as part of its first public offering (IPO). From the $450 million that was originally stated, this represents a huge increase. The entire possible financing might be close to $1.4 billion when added to an offer for sale (OFS) of $800 million.
The board has approved a special resolution for the issuing of equity shares of the Bengaluru-based company. The issuance of equity shares is contingent upon shareholder approval at an extraordinary general meeting (EGM) on October 3. At the EGM, the IPO’s final size will be decided.
Prosus-backed Swiggy will submit its draft red herring prospectus (DRHP) to Sebi shortly. Hindustan Composites and Amitabh Bachchan’s Family Office have recently made substantial investments in the company, and investor Baron Capital has estimated the company’s worth at $14.5 billion. Until the deadline, Swiggy did not reply to any of the inquiries.
Swiggy recorded a 36% increase in revenue year over year in FY24, coming in at Rs 11,247 crore. At the same time, the company cut its losses by 44%, to Rs 2,350 crore.
The rapid commerce industry is becoming more and more competitive, which is why the IPO size increased. While more recent entries like Zepto have raised a sizable amount of capital, competitors like Zomato and Blinkit have improved their profitability and market capitalization.
Instamart, Swiggy’s rapid commerce division, has grown and is currently available in 43 Indian cities. Fast commerce services have been introduced to eleven new cities in the last two months, including Rajkot, Thrissur, Mangalore, Kanpur, Udaipur, Warangal, Salem, Amritsar, Bhopal, Varanasi, and Ludhiana, according to the company.
As it enters tier-II and tier-III regions, Instamart intends to build its store network in key metro areas. The portal offers products relevant to regions through partnerships with local vendors and brands. To accommodate growing demand, especially during the holiday season, Swiggy Instamart intends to diversify its product variety and continue to grow its network of dark stores.
