Swiggy Increases IPO Size to ₹11,664 Crore, Set for Largest Offering of 2024

Swiggy, the Indian food delivery company backed by SoftBank, has received approval from its shareholders to increase the size of its fresh issue in its upcoming IPO. 

The company can now raise up to ₹5,000 crore ($595 million), up from the previously planned ₹3,750 crore, according to sources. India’s IPO market is booming, with around 250 companies raising over $9 billion so far this year, more than double the amount raised in the same period last year, according to LSEG data.

Swiggy’s current shareholders will sell shares worth ₹6,664 crore, with no changes to that amount. However, with the increase in the fresh issue, the total size of Swiggy’s IPO will rise to $1.4 billion from $1.25 billion. This makes it the largest IPO in India this year, surpassing NTPC Green Energy’s $1.2 billion filing. Swiggy has not yet responded to Reuters’ request for comment. 

The Bengaluru-based company filed its draft IPO papers last week, aiming for a $15 billion valuation. Swiggy plans to use the funds to expand its quick-commerce service ‘Instamart’, where it competes with rivals like Zomato and Zepto to deliver groceries and electronics in just 10 minutes. Swiggy also competes with Zomato in food delivery.

Swiggy Business Details

Swiggy is a customer-focused tech company with a user-friendly app that allows customers to browse, choose, order, and pay for groceries and household goods through its Instamart service. The app also provides food delivery, event booking (SteppinOut), item pickup and drop-off (Genie), and other local services. Swiggy’s platform connects users with on-demand delivery partners for home delivery of their orders.

Swiggy leads in high-frequency local commerce through innovation. It has a growing user base and increasing engagement. The unified “Swiggy” app offers a smooth experience, making it the top choice for restaurant and merchant partners, brands, and delivery agents. The wide user network creates positive network effects, while a strong leadership team and good governance drive the company’s success.

Swiggy Financials

Swiggy has faced continuous financial losses since its founding, though its losses have reduced over time. For the fiscal year ending March 31, Swiggy’s losses fell to ₹2,350.24 crore, down from ₹4,179.30 crore in FY23 and ₹3,628.89 crore in FY22. During this time, operating revenue rose to ₹11,247.39 crore, compared to ₹8,264.59 crore in FY23 and ₹5,704.89 crore in FY22.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.