Swiggy set to expand upcoming IPO to ₹5,000 Crore at $15 billion valuation 

Swiggy, the popular food and grocery delivery platform, is preparing for a significant adjustment in its upcoming IPO, seeking to increase the fresh issue component to ₹5,000 crore. The company has called an extraordinary general meeting (EGM) for October 3, 2024, to secure shareholder approval for this change, according to a notice sent out recently. Initially, Swiggy aimed to raise ₹3,750 crore in fresh capital, coupled with a ₹6,664 crore offer for sale from its existing investors.

Back in April, Swiggy had confidentially submitted its IPO papers, targeting a total offering of ₹10,400 crore (approximately $1.25 billion). The company is reportedly seeking a valuation close to $15 billion as it prepares to go public. However, the ultimate size of the IPO may differ from what Swiggy is currently seeking approval for.

The confidential filing of its draft prospectus with the Securities and Exchange Board of India (SEBI) was a key milestone, following the board’s initial approval of the IPO in April 2024. The upcoming EGM will now allow shareholders to weigh in on the proposed changes, potentially setting the stage for one of India’s largest tech IPOs in recent years. 

Meanwhile, Swiggy has shown impressive financial progress. In its financial report for the year ending March 31, 2024, the company posted an operating revenue of ₹11,247 crore, a robust 36% year-on-year growth. Additionally, Swiggy managed to cut its net losses by 44%, bringing them down to ₹2,350 crore, demonstrating its strides toward financial sustainability. 

In the food delivery space, Swiggy remains locked in fierce competition with its primary rival, Zomato. In 2020, Swiggy dominated the market with a 52 percent share, but since going public, Zomato has made significant gains. In the quick commerce sector, its Instamart service faces strong contenders like Zomato-owned Blinkit, Zepto (backed by Nexus Venture Partners), Flipkart Minutes, and Tata Digital’s BigBasket. Blinkit, in particular, has captured a leading 40% market share, while Zepto has seen rapid growth, increasing its share from 15% in March 2022 to 22% by January 2024.

As Swiggy advances toward its IPO, these financial and market dynamics will play a crucial role in shaping investor sentiment, with the company aiming to position itself as a dominant player in both the food delivery and quick commerce sectors. All eyes will now be on the company’s EGM and subsequent moves as it finalizes its journey toward becoming a publicly listed entity.