IPO-bound Swiggy Ltd. saw a 35% increase in revenue from its top two businesses—food delivery and the quick-commerce unit Instamart—in FY24, along with a significant reduction in operating losses.
The Bengaluru-based company’s revenue from its two business segments increased from INR 5,800 crore in FY23 to INR 7,800 crore in FY24, according to sources who spoke on condition of anonymity. During the same period, operating losses for these segments decreased from INR 2,500 crore to INR 1,500 crore.
The financials include only the revenue from Swiggy’s core food delivery business and quick-commerce arm, excluding its Genie and Dineout businesses.
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IPO Plans and Valuation
The Sriharsha Majety-led company has reportedly filed for a confidential initial public offering. In April, Swiggy’s shareholders passed a resolution for the IPO, outlining a structure that could involve up to INR 10,000 crore in a fresh issue of shares and an offer for sale. Swiggy is seeking a valuation of nearly $10 billion for the IPO, according to sources familiar with the matter. Its competitor, Zomato Ltd., currently listed on the stock exchange, is valued at $18.7 billion.
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According to filings made with the Registrar of Companies, accessed via TheKredible, shareholders of the food delivery major gave their nod for a potential INR 10,414-crore IPO.
The operator of Instamart intends to raise up to INR 6,664 crore through the offer-for-sale route and INR 3,750 crore through a fresh issue of shares. Additionally, Swiggy has the option to raise up to INR 750 crore in a pre-IPO anchor round.
In FY23, Swiggy’s consolidated revenue from operations amounted to INR 8,264 crore, as per filings with the Registrar of Companies. This marked a 45% surge from INR 5,705 crore in FY22. Despite the revenue growth, the company’s consolidated loss widened to INR 4,179 crore from INR 3,629 crore in the preceding fiscal year.
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