Swiggy, a prominent food delivery giant, has reportedly filed for an initial public offering (IPO) via confidential pre-filing route with the Securities and Exchange Board of India (SEBI).
This development comes just a day after Swiggy received approval from its shareholders for an IPO worth $1.2 Bn.
Continue Exploring: Swiggy gets green light from shareholders for $1.2 Billion IPO
According to regulatory filings, the startup’s IPO will comprise a fresh issue of shares valued at INR 3,750.1 Crore (approximately $449 million) and an offer-for-sale component amounting to INR 6,664 Crore (about $799 million).
While Moneycontrol reported on Swiggy’s confidential filing for its IPO, the company has refuted the claim.
It’s worth noting that last year, hospitality giant OYO also opted for a confidential pre-filing approach when reapplying for its IPO with SEBI. According to SEBI’s recent notification regarding draft IPO documents, the startup’s IPO remains in the pre-filing stage even after a year.
Opting for the confidential pre-filing route grants companies additional time and flexibility to strategize their public debut. Moreover, it permits them to adjust the primary issue size by up to 50% until an updated DRHP is submitted to SEBI.
In contrast to the conventional method of submitting draft offer documents for an IPO, the particulars of the IPO are not publicly disclosed in the case of a pre-filing.
Moreover, unlike the conventional IPO filing process, which mandates companies to launch their IPO within 12 months of SEBI’s approval, the confidential filing permits companies to launch their IPO within 18 months of SEBI’s final comments.
Established in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini (who left the company in 2020), Swiggy initially operated as a food delivery startup. Subsequently, it introduced its quick commerce division, Swiggy Instamart, and expanded its services to include a courier service known as Swiggy Genie.
Ahead of its IPO, Swiggy integrated Swiggy Mall, a platform selling various non-grocery items such as footwear and electronics, into its quick commerce service, Instamart.
Continue Exploring: Swiggy merges Swiggy Mall with Instamart to expand quick commerce offerings beyond groceries
As part of its preparations, the company also appointed Anand Kripalu as an independent director and the chairperson of its boards in December last year.
Swiggy’s IPO stands out as the largest and most eagerly awaited in 2024, a year projected to witness the public debuts of at least 10 startups.
In FY23, Swiggy recorded a net loss of INR 4,179.3 Crore, reflecting a 15% year-on-year increase.
Reports suggest that the decacorn is on track to report approximately INR 10,000 Crore in revenue for FY24, buoyed by the surge in its Instamart orders, platform fees related to food delivery, and growing traction for its dining-out business.
Continue Exploring: Invesco marks IPO-bound Swiggy’s valuation at $12.7 Billion, up 18% from last fundraise
