IPO-bound Swiggy is set to change its registered name from Bundl Technologies Private Limited to Swiggy Private Limited, following a resolution passed earlier this month by the shareholders of the food delivery giant.
“The same (change in name) was in line with the Management belief that the change in the name of the Company will help establish greater proximity and identification of the Company’s corporate name with the Company’s core brand, ‘Swiggy’,” the startup said in the resolution.
The name change will require approval from the Registrar of Companies (RoC).
This development comes at a crucial time for the food delivery giant as it prepares for its initial public offering (IPO). Renaming will enable the startup to trade under the name “Swiggy” on the stock exchanges.
Continue Exploring: Swiggy may file IPO by fiscal year end, plans to raise capital with combination of offer-for-sale and new issue; Prosus contemplates stake reduction
As part of its IPO preparations scheduled for later this year, Swiggy also named Anand Kripalu as an independent director and chairperson of its board of directors in December of last year. Previously, Kripalu served as the managing director and global CEO of Essel Propack Ltd.
Before that, the startup added three new independent directors to its board last year: Sahil Barua, the MD and CEO of Delhivery; Mallika Srinivasan, the MD and chairman of TAFE; and Shailesh Haribhakti, the chairman of Shailesh Haribhakti & Associates. However, earlier this month, Srinivasan resigned from her role as an independent director at Swiggy.
The Bengaluru-headquartered startup aims to debut on the stock exchanges around mid-2024. Anticipated to reach a size of $1 billion (INR 8,300 crore), its public offering is already being hailed as one of the largest IPOs among new-age tech firms.
Continue Exploring: IPO-bound Swiggy initiates workforce reduction, plans to cut 6% of jobs to enhance profitability
Swiggy contends with Zomato in India’s food delivery sector, which largely operates as a duopoly. However, both are also challenged by the government-backed Open Network for Digital Commerce (ONDC).
In FY23, the Invesco-backed decacorn reported a net loss of INR 4,179.3 Cr, marking a 15% increase from INR 3,628.9 Cr in the previous financial year. Swiggy’s operating revenue surged over 40% to INR 8,264.4 Cr in FY23 from INR 5,704.9 Cr in FY22 as it scaled up its quick commerce vertical during the year.
The foodtech giant saw its expenditure rise by over 35% to INR 12,884.4 Cr in FY23, compared to INR 9,574.5 Cr in the previous fiscal year.
Valued at over $10 billion, Swiggy has raised over $3 billion in funding to date. Notable backers include industry giants such as SoftBank, Prosus Ventures, and DST Global.
It’s worth noting that Swiggy’s competitor, Zomato, has reported three consecutive profitable quarters in the current financial year thus far.
Continue Exploring: Zomato reports third consecutive profitable quarter with INR 138 Cr PAT in Q3 FY24