Foodtech giant Swiggy has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering.
Following͏͏ the͏͏ approval,͏͏ the͏͏ startup͏͏ will͏͏ now͏͏ submit͏͏ two͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectuses͏͏ (DRHPs):͏͏ one͏͏ addressing͏͏ SEBI’s͏͏ comments͏͏ on͏͏ its͏͏ confidential͏͏ DRHP͏͏ and͏͏ another͏͏ seeking͏͏ public͏͏ feedback,͏͏ according͏͏ to͏͏ sources͏͏ cited͏͏ by͏͏ Moneycontrol.
Timing͏͏ and͏͏ Size͏͏ of͏͏ the͏͏ IPO Under͏͏ Discussion:
The͏͏ report͏͏ stated͏͏ that͏͏ Swiggy͏͏ can͏͏ file͏͏ its͏͏ red͏͏ herring͏͏ prospectus͏͏ (RHP)͏͏ only͏͏ after͏͏ this͏͏ step.͏͏ The͏͏ exact͏͏ size͏͏ of͏͏ the͏͏ public͏͏ offering͏͏ has͏͏ yet͏͏ to͏͏ be͏͏ disclosed.
“While͏͏ no͏͏ final͏͏ decision͏͏ has͏͏ been͏͏ made,͏͏ the͏͏ Swiggy͏͏ issue͏͏ may͏͏ launch͏͏ in͏͏ November.͏͏ Discussions͏͏ with͏͏ anchor͏͏ investors͏͏ will͏͏ commence͏͏ now,”͏͏ a͏͏ source͏͏ informed͏͏ the͏͏ publication.
Swiggy͏͏ chose͏͏ not͏͏ to͏͏ comment͏͏ on͏͏ the͏͏ development.
Expected͏͏ Fundraising͏͏ and͏͏ Offer͏͏ Details:
Although͏͏ the͏͏ exact͏͏ size͏͏ of͏͏ the͏͏ IPO͏͏ remains͏͏ unclear,͏͏ the͏͏ startup͏͏ is͏͏ expected͏͏ to͏͏ raise͏͏ $1.4͏͏ billion͏͏ through͏͏ the͏͏ offering.͏͏ Recent͏͏ reports͏͏ indicate͏͏ that͏͏ it͏͏ will͏͏ seek͏͏ shareholders’͏͏ approval͏͏ to͏͏ increase͏͏ the͏͏ fresh͏͏ issue͏͏ size͏͏ for͏͏ the͏͏ public͏͏ offering͏͏ from͏͏ INR͏͏ 3,750͏͏ crore͏͏ to͏͏ INR͏͏ 5,000͏͏ crore.͏͏ Additionally,͏͏ the͏͏ issue͏͏ will͏͏ include͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ component͏͏ amounting͏͏ to͏͏ INR͏͏ 6,664͏͏ crore.
Swiggy͏͏ submitted͏͏ its͏͏ IPO͏͏ papers͏͏ to͏͏ SEBI͏͏ through͏͏ the͏͏ confidential͏͏ route͏͏ in͏͏ April͏͏ this͏͏ year.͏͏ Since͏͏ then,͏͏ prominent͏͏ investors,͏͏ including͏͏ actors͏͏ Amitabh͏͏ Bachchan͏͏ and͏͏ Madhuri͏͏ Dixit,͏͏ as͏͏ well͏͏ as͏͏ Modern͏͏ Insulators͏͏ and͏͏ Hindustan͏͏ Composites,͏͏ have͏͏ acquired͏͏ stakes͏͏ in͏͏ the͏͏ startup.
Continue͏͏ Exploring:͏͏ After͏͏ Amitabh͏͏ Bachchan,͏͏ Madhuri͏͏ Dixit͏͏ acquires͏͏ stake͏͏ in͏͏ IPO-bound͏͏ Swiggy
In͏͏ the͏͏ lead-up͏͏ to͏͏ its͏͏ IPO,͏͏ the͏͏ startup͏͏ informed͏͏ its͏͏ investors͏͏ that͏͏ its͏͏ revenue͏͏ increased͏͏ by͏͏ 36%͏͏ to͏͏ INR͏͏ 11,247͏͏ crore͏͏ in͏͏ the͏͏ fiscal͏͏ year͏͏ 2023-24͏͏ (FY24),͏͏ up͏͏ from͏͏ INR͏͏ 8,265͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ year.͏͏ Additionally,͏͏ it͏͏ reported͏͏ a͏͏ 44%͏͏ reduction͏͏ in͏͏ its͏͏ net͏͏ loss,͏͏ which͏͏ decreased͏͏ to͏͏ INR͏͏ 2,350͏͏ crore͏͏ for͏͏ the͏͏ year͏͏ under͏͏ review,͏͏ compared͏͏ to͏͏ INR͏͏ 4,179͏͏ crore͏͏ in͏͏ FY23.
Continue͏͏ Exploring:͏͏ Swiggy’s͏͏ FY24͏͏ revenue͏͏ soars͏͏ 36%͏͏ to͏͏ INR͏͏ 11,247͏͏ Cr;͏͏ net͏͏ loss͏͏ nearly͏͏ halves͏͏ to͏͏ INR͏͏ 2,350͏͏ Cr
Second͏͏ Foodtech͏͏ Giant͏͏ to͏͏ Go͏͏ Public:
With͏͏ the͏͏ IPO,͏͏ Swiggy͏͏ will͏͏ become͏͏ the͏͏ second͏͏ foodtech͏͏ giant͏͏ to͏͏ be͏͏ listed͏͏ on͏͏ the͏͏ stock͏͏ exchanges,͏͏ following͏͏ its͏͏ rival͏͏ Zomato,͏͏ which͏͏ went͏͏ public͏͏ in͏͏ 2021.͏͏ Zomato͏͏ currently͏͏ boasts͏͏ a͏͏ market͏͏ capitalisation͏͏ of͏͏ over͏͏ $30͏͏ billion.
Brokerage͏͏ firm͏͏ Elara͏͏ Capital͏͏ anticipates͏͏ that͏͏ Swiggy͏͏ will͏͏ achieve͏͏ a͏͏ lower͏͏ valuation͏͏ than͏͏ Zomato.͏͏ It͏͏ cited͏͏ that͏͏ Zomato’s͏͏ revenue,͏͏ gross͏͏ order͏͏ volume,͏͏ and͏͏ order͏͏ count,͏͏ among͏͏ other͏͏ metrics,͏͏ are͏͏ superior͏͏ to͏͏ those͏͏ of͏͏ Swiggy.
