Global investment giant Prosus has reaped a whopping $2 billion from its investment in foodtech major Swiggy, which made its stock market debut on November 13 at a valuation of $11.3 billion.
Prosus sells shares worth $500 Mn as part of IPO
According to INC42, Prosus, Swiggy’s largest shareholder, sold shares worth $500 million as part of the initial public offering (IPO), earning over 3X returns on its investment.
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“Swiggy is on a strong growth trajectory as a public company, having diversified into new categories and expanded into new cities,” said Fabricio Bloisi, CEO of Prosus. “India remains a key growth market for Prosus, given the country’s impressive digital transformation in the consumer and enterprise sectors.”
Prosus retains 25% stake in Swiggy
However, Prosus has retained a 25% stake in Swiggy following the IPO. The company has invested over $7 billion in Indian startups, including Swiggy, Meesho, PharmEasy, and Urban Company.
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Meanwhile, Swiggy’s IPO listing price was INR 420, an 8% premium on the National Stock Exchange (NSE), compared to its issue price of INR 390 per share. Early backers Accel India and Elevation Capital are set to make over 34X returns by selling a portion of their stake.
Notably, the company’s public debut comes amidst intense competition in the food delivery and quick commerce segments from rivals Zomato and Zepto, as well as newcomers Reliance Retail and Flipkart.
“We are excited about the region and see huge opportunities for value creation, including a strong IPO pipeline within our current portfolio,” added Bloisi.
