Just days before foodtech giant Swiggy submitted its updated draft red herring prospectus (DRHP) to SEBI, founder Sriharsha Majety and some investors offloaded shares worth INR 670 crore.
Torroz͏͏ Fintech͏͏ Acquires͏͏ Swiggy Shares:
On͏͏ September͏͏ 20,͏͏ Swiggy͏͏ co-founder͏͏ and͏͏ group͏͏ CEO͏͏ Sriharsha͏͏ Majety͏͏ sold͏͏ 6,36,972͏͏ equity͏͏ shares͏͏ to͏͏ Torroz͏͏ Fintech͏͏ at͏͏ INR͏͏ 345͏͏ each.͏͏ He͏͏ followed͏͏ this͏͏ with͏͏ an͏͏ additional͏͏ sale͏͏ of͏͏ 29,695͏͏ shares͏͏ at͏͏ the͏͏ same͏͏ price͏͏ on͏͏ September͏͏ 23.͏͏ These͏͏ two͏͏ secondary͏͏ transactions͏͏ earned͏͏ the͏͏ CEO͏͏ INR͏͏ 23͏͏ crore.
Along͏͏ with͏͏ the͏͏ shares͏͏ from͏͏ Majety,͏͏ Torroz͏͏ Fintech͏͏ also͏͏ bought͏͏ 4,326͏͏ Series͏͏ B͏͏ compulsorily͏͏ convertible͏͏ preference͏͏ shares͏͏ (CCPS)͏͏ from͏͏ Swiggy͏͏ investor͏͏ Norwest͏͏ Ventures͏͏ Private͏͏ Limited͏͏ at͏͏ INR͏͏ 4.62͏͏ lakh͏͏ per͏͏ share.͏͏ This͏͏ all-cash͏͏ transaction͏͏ totalled͏͏ INR͏͏ 200͏͏ crore͏͏ to͏͏ the͏͏ investment͏͏ firm.
Continue͏͏ Exploring:͏͏ IPO-bound͏͏ Swiggy grants͏͏ $271͏͏ Mn͏͏ in͏͏ ESOPs͏͏ to͏͏ founders,͏͏ top͏͏ executives
As͏͏ per͏͏ Torroz͏͏ Fintech’s͏͏ website,͏͏ the͏͏ company͏͏ specialises͏͏ in͏͏ offering͏͏ curated͏͏ investment͏͏ opportunities͏͏ across͏͏ various͏͏ financial͏͏ securities͏͏ in͏͏ private͏͏ and͏͏ other͏͏ markets.͏͏ It͏͏ highlights͏͏ an͏͏ extensive͏͏ network͏͏ of͏͏ private͏͏ equity͏͏ firms,͏͏ wealth͏͏ managers,͏͏ family͏͏ offices,͏͏ and͏͏ high-net-worth͏͏ individuals.
“Explore͏͏ the͏͏ world͏͏ of͏͏ private͏͏ markets,͏͏ where͏͏ exclusive͏͏ opportunities͏͏ await͏͏ astute͏͏ investors,”͏͏ states͏͏ its͏͏ website.͏͏ The͏͏ company͏͏ was͏͏ established͏͏ in͏͏ 2022͏͏ by͏͏ directors͏͏ Pratik͏͏ Vaja͏͏ and͏͏ Rahul͏͏ Kurup͏͏ of͏͏ 4Sight͏͏ Global͏͏ Ventures.
Strootaay͏͏ Unlisted͏͏ Brokers’͏͏ Significant͏͏ Deal:
In͏͏ addition͏͏ to͏͏ Torroz͏͏ Fintech,͏͏ Strootaay͏͏ Unlisted͏͏ Brokers͏͏ acquired͏͏ 4.63͏͏ lakh͏͏ Series͏͏ B͏͏ CCPS͏͏ of͏͏ Swiggy͏͏ from͏͏ venture͏͏ capital͏͏ firm͏͏ Elevation͏͏ Capital͏͏ for͏͏ INR͏͏ 439.12͏͏ crore͏͏ on͏͏ September͏͏ 11,͏͏ as͏͏ per͏͏ the͏͏ draft͏͏ IPO͏͏ documents.
Chennai-based͏͏ Strootaay͏͏ Unlisted͏͏ Brokers͏͏ provides͏͏ investors͏͏ with͏͏ a͏͏ platform͏͏ to͏͏ invest͏͏ in͏͏ unlisted͏͏ shares͏͏ of͏͏ late-stage,͏͏ pre-IPO͏͏ companies.
Meanwhile,͏͏ another͏͏ Swiggy͏͏ investor,͏͏ Ark͏͏ India͏͏ FoodTech͏͏ Private͏͏ Investment͏͏ Trust,͏͏ sold͏͏ 2.1͏͏ lakh͏͏ equity͏͏ shares͏͏ to͏͏ Moksh͏͏ Capital͏͏ Partners͏͏ 1͏͏ at͏͏ INR͏͏ 360͏͏ each͏͏ on͏͏ September͏͏ 23,͏͏ bringing͏͏ the͏͏ total͏͏ transaction͏͏ value͏͏ to͏͏ INR͏͏ 7.56͏͏ crore.
Moksha͏͏ Finance͏͏ assists͏͏ startups͏͏ in͏͏ obtaining͏͏ seed-stage͏͏ funding,͏͏ connecting͏͏ them͏͏ with͏͏ angel͏͏ investors͏͏ and͏͏ venture͏͏ capital͏͏ firms,͏͏ and͏͏ facilitating͏͏ their͏͏ transition͏͏ to͏͏ public͏͏ markets.͏͏ According͏͏ to͏͏ its͏͏ website,͏͏ the͏͏ firm͏͏ has͏͏ completed͏͏ five͏͏ deals͏͏ across͏͏ various͏͏ sectors͏͏ in͏͏ the͏͏ past͏͏ year.
High͏͏ Demand͏͏ for͏͏ Unlisted͏͏ Shares:
These͏͏ deals͏͏ offered͏͏ investors͏͏ partial͏͏ exits͏͏ ahead͏͏ of͏͏ the͏͏ IPO͏͏ due͏͏ to͏͏ strong͏͏ demand͏͏ for͏͏ unlisted͏͏ shares͏͏ of͏͏ Swiggy.͏͏ Several͏͏ high-net-worth͏͏ individuals͏͏ (HNIs)͏͏ and͏͏ companies͏͏ have͏͏ purchased͏͏ shares͏͏ in͏͏ Swiggy͏͏ prior͏͏ to͏͏ the͏͏ launch͏͏ of͏͏ its͏͏ public͏͏ issue.͏͏ Most͏͏ recently,͏͏ the͏͏ co-founders͏͏ of͏͏ angel͏͏ investing͏͏ platform͏͏ BizDateup,͏͏ Jeet͏͏ Chandan͏͏ and͏͏ Meet͏͏ Jain,͏͏ revealed͏͏ they͏͏ had͏͏ acquired͏͏ stakes͏͏ in͏͏ the͏͏ startup͏͏ for͏͏ an͏͏ undisclosed͏͏ amount.
Actor͏͏ Madhuri͏͏ Dixit,͏͏ Amitabh͏͏ Bachchan’s͏͏ family͏͏ office,͏͏ and͏͏ companies͏͏ like͏͏ Modern͏͏ Insulators͏͏ and͏͏ Hindustan͏͏ Composites͏͏ also͏͏ purchased͏͏ shares͏͏ in͏͏ the͏͏ foodtech͏͏ giant͏͏ ahead͏͏ of͏͏ the͏͏ IPO.
According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ IPO͏͏ will͏͏ include͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ INR͏͏ 3,750͏͏ crore͏͏ and͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ of͏͏ up͏͏ to͏͏ 18.53͏͏ crore͏͏ equity͏͏ shares.͏͏ However,͏͏ the͏͏ company͏͏ received͏͏ approval͏͏ from͏͏ its͏͏ shareholders͏͏ earlier͏͏ this͏͏ month͏͏ to͏͏ raise͏͏ the͏͏ size͏͏ of͏͏ the͏͏ fresh͏͏ issue͏͏ to͏͏ INR͏͏ 5,000͏͏ crore͏͏ in͏͏ the͏͏ IPO.
CEO͏͏ Majety͏͏ will͏͏ be͏͏ selling͏͏ up͏͏ to͏͏ 1.74͏͏ million͏͏ equity͏͏ shares͏͏ as͏͏ part͏͏ of͏͏ the͏͏ IPO.
