Foodtech giant Swiggy filed its first updated draft red herring prospectus (DRHP) with SEBI on Thursday, seeking to raise INR 3,750 Cr ($450 Mn) through an initial public offering.
Public͏͏ Offering͏͏ Details:
According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ public͏͏ offering͏͏ will͏͏ include͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares͏͏ worth͏͏ INR͏͏ 3,750͏͏ Cr,͏͏ along͏͏ with͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ (OFS)͏͏ of͏͏ 18.53͏͏ Cr͏͏ equity͏͏ shares.
Considering͏͏ recent͏͏ share͏͏ purchases͏͏ at͏͏ approximately͏͏ INR͏͏ 350͏͏ each,͏͏ the͏͏ OFS͏͏ component͏͏ is͏͏ estimated͏͏ at͏͏ around͏͏ INR͏͏ 6,485͏͏ Cr.͏͏ This͏͏ brings͏͏ the͏͏ total͏͏ size͏͏ of͏͏ Swiggy’s͏͏ IPO͏͏ to͏͏ roughly͏͏ INR͏͏ 10,000͏͏ Cr͏͏ ($1.2͏͏ Bn).
Continue͏͏ Exploring:͏͏ Swiggy gets͏͏ SEBI͏͏ nod͏͏ for͏͏ IPO,͏͏ eyes͏͏ November͏͏ listing
Key͏͏ Investors͏͏ Selling͏͏ Shares͏͏ in͏͏ OFS:
As͏͏ part͏͏ of͏͏ the͏͏ OFS͏͏ component,͏͏ investors͏͏ including͏͏ Accel,͏͏ Coatue,͏͏ Alpha͏͏ Wave,͏͏ Elevation,͏͏ Norwest,͏͏ and͏͏ Tencent͏͏ will͏͏ sell͏͏ shares.͏͏ Accel͏͏ India͏͏ IV͏͏ (Mauritius)͏͏ Ltd͏͏ will͏͏ offload͏͏ 1.05͏͏ Cr͏͏ shares,͏͏ while͏͏ Alpha͏͏ Wave͏͏ Ventures͏͏ will͏͏ sell͏͏ 55.73͏͏ Lakh͏͏ shares.
This͏͏ comes͏͏ days͏͏ after͏͏ reports͏͏ emerged͏͏ that͏͏ SEBI͏͏ approved͏͏ Swiggy’s͏͏ DRHP͏͏ via͏͏ the͏͏ confidential͏͏ pre-filing͏͏ route.
The͏͏ company͏͏ plans͏͏ to͏͏ utilise͏͏ the͏͏ fresh͏͏ IPO͏͏ proceeds͏͏ for͏͏ marketing͏͏ and͏͏ promotional͏͏ expenses͏͏ (INR͏͏ 929.5͏͏ Cr),͏͏ investing͏͏ in͏͏ technology͏͏ and͏͏ cloud͏͏ infrastructure,͏͏ funding͏͏ inorganic͏͏ growth͏͏ through͏͏ acquisitions͏͏ and͏͏ for͏͏ general͏͏ corporate͏͏ purposes.
A͏͏ significant͏͏ portion͏͏ of͏͏ the͏͏ capital͏͏ will͏͏ also͏͏ be͏͏ allocated͏͏ to͏͏ support͏͏ its͏͏ “material͏͏ subsidiary”͏͏ Scootsy.͏͏ The͏͏ company͏͏ has͏͏ set͏͏ aside͏͏ INR͏͏ 982.4͏͏ Cr͏͏ for͏͏ establishing͏͏ Scootsy’s͏͏ network͏͏ of͏͏ dark͏͏ stores͏͏ and͏͏ for͏͏ lease͏͏ and͏͏ licence͏͏ payments͏͏ associated͏͏ with͏͏ these͏͏ stores.
The͏͏ DRHP͏͏ stated,͏͏ “Investment͏͏ in͏͏ our͏͏ material͏͏ subsidiary,͏͏ Scootsy,͏͏ will͏͏ focus͏͏ on:͏͏ (a)͏͏ expanding͏͏ our͏͏ dark͏͏ store͏͏ network͏͏ for͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ through͏͏ the͏͏ establishment͏͏ of͏͏ dark͏͏ stores,͏͏ and͏͏ (b)͏͏ covering͏͏ lease͏͏ and͏͏ licence͏͏ payments͏͏ for͏͏ these͏͏ dark͏͏ stores.”
In͏͏ its͏͏ DRHP,͏͏ Swiggy͏͏ stated͏͏ that͏͏ Scootsy͏͏ Logistics͏͏ Private͏͏ Ltd.͏͏ will͏͏ provide͏͏ supply͏͏ chain͏͏ services͏͏ to͏͏ wholesalers͏͏ and͏͏ retailers,͏͏ including͏͏ warehouse͏͏ management,͏͏ in-warehouse͏͏ processing,͏͏ and͏͏ order͏͏ fulfilment͏͏ services.
The͏͏ book-running͏͏ lead͏͏ managers͏͏ for͏͏ the͏͏ IPO͏͏ include͏͏ Kotak͏͏ Mahindra͏͏ Capital,͏͏ JP͏͏ Morgan͏͏ India,͏͏ BofA͏͏ Securities,͏͏ Citigroup͏͏ Global,͏͏ Jefferies,͏͏ and͏͏ others.
Once͏͏ SEBI͏͏ grants͏͏ approval,͏͏ the͏͏ startup͏͏ will͏͏ list͏͏ its͏͏ shares͏͏ on͏͏ the͏͏ NSE͏͏ and͏͏ BSE.
Financial͏͏ Performance:
According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ net͏͏ losses͏͏ increased͏͏ by͏͏ over͏͏ 7%͏͏ to͏͏ INR͏͏ 605.7͏͏ Cr͏͏ in͏͏ the͏͏ first͏͏ quarter͏͏ (Q1)͏͏ of͏͏ the͏͏ financial͏͏ year͏͏ 2024-25͏͏ (FY25),͏͏ up͏͏ from͏͏ INR͏͏ 562.8͏͏ Cr͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ fiscal͏͏ year.
Meanwhile,͏͏ revenue͏͏ from͏͏ operations͏͏ soared͏͏ by͏͏ nearly͏͏ 35%͏͏ to͏͏ INR͏͏ 3,222.2͏͏ Cr͏͏ in͏͏ the͏͏ June͏͏ quarter͏͏ of͏͏ the͏͏ current͏͏ fiscal͏͏ year,͏͏ compared͏͏ to͏͏ INR͏͏ 2,389.8͏͏ Cr͏͏ in͏͏ Q1͏͏ FY24.
Founded͏͏ in͏͏ 2014͏͏ by͏͏ Sriharsha͏͏ Majety,͏͏ Nandan͏͏ Reddy,͏͏ Phani͏͏ Kishan͏͏ Addepalli,͏͏ and͏͏ Rahul͏͏ Jaimini,͏͏ Swiggy͏͏ began͏͏ as͏͏ a͏͏ food͏͏ delivery͏͏ startup͏͏ before͏͏ expanding͏͏ into͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ with͏͏ Instamart.
It͏͏ competes͏͏ with͏͏ established͏͏ foodtech͏͏ player͏͏ Zomato.
This͏͏ development͏͏ follows͏͏ Swiggy’s͏͏ initial͏͏ DRHP͏͏ filing͏͏ with͏͏ SEBI͏͏ through͏͏ the͏͏ confidential͏͏ pre-filing͏͏ route͏͏ for͏͏ an͏͏ IPO͏͏ valued͏͏ at͏͏ INR͏͏ 10,414.1͏͏ Cr͏͏ in͏͏ April.͏͏ Reports͏͏ indicate͏͏ that͏͏ the͏͏ company͏͏ received͏͏ approval͏͏ from͏͏ the͏͏ regulator͏͏ for͏͏ the͏͏ IPO͏͏ just͏͏ days͏͏ ago.
High-Profile͏͏ Investments͏͏ Boost͏͏ IPO͏͏ Confidence:
In͏͏ the͏͏ run-up͏͏ to͏͏ the͏͏ IPO,͏͏ the͏͏ company͏͏ also͏͏ secured͏͏ investments͏͏ from͏͏ the͏͏ family͏͏ office͏͏ of͏͏ actor͏͏ Amitabh͏͏ Bachchan,͏͏ actress͏͏ Madhuri͏͏ Dixit,͏͏ cricketers͏͏ Rahul͏͏ Dravid͏͏ and͏͏ Zaheer͏͏ Khan,͏͏ tennis͏͏ star͏͏ Rohan͏͏ Bopanna,͏͏ director͏͏ Karan͏͏ Johar,͏͏ and͏͏ actor͏͏ Ashish͏͏ Chowdhry.
Continue͏͏ Exploring:͏͏ Swiggy attracts͏͏ celebrity͏͏ investors:͏͏ Rahul͏͏ Dravid,͏͏ Karan͏͏ Johar͏͏ &͏͏ others͏͏ invest͏͏ in͏͏ pre-IPO͏͏ round
With͏͏ this͏͏ move,͏͏ Swiggy͏͏ has͏͏ become͏͏ the͏͏ latest͏͏ Indian͏͏ startup͏͏ to͏͏ enter͏͏ the͏͏ IPO͏͏ arena.͏͏ Driven͏͏ by͏͏ positive͏͏ market͏͏ sentiment͏͏ and͏͏ increasing͏͏ investor͏͏ interest͏͏ in͏͏ new-age͏͏ tech͏͏ companies,͏͏ ten͏͏ Indian͏͏ startups͏͏ have͏͏ listed͏͏ on͏͏ the͏͏ exchanges͏͏ this͏͏ year,͏͏ including͏͏ Go͏͏ Digit͏͏ General͏͏ Insurance,͏͏ FirstCry,͏͏ Unicommerce,͏͏ TBO͏͏ Tek,͏͏ Ola͏͏ Electric,͏͏ and͏͏ Awfis,͏͏ among͏͏ others.
