Swiggy’s IPO Confidential Filing Received Approval From SEBI

Food delivery giant Swiggy has taken a significant step towards its initial public offering (Swiggy IPO). The company has received approval from the Securities and Exchange Board of India (SEBI) for its confidential filing of draft share sale documents. This green light allows Swiggy to proceed with its IPO plans.

SEBI’s approval follows the confidential filing process introduced in late 2022. Under this process, companies can keep their IPO documents private until they finalise their plans. Swiggy, backed by prominent investors like Prosus and SoftBank, recently increased its IPO target to $1.4 billion.

Details of the Share Sale

Prosus Ventures, Norwest Venture Partners, and Goldman Sachs are considering selling a portion of their Swiggy shares during the upcoming $1.25 billion IPO. In contrast, SoftBank, which has recently profited from the IPOs of Ola Electric, Firstcry, and Unicommerce, is expected to retain its stake, according to Mint.

Norwest and Prosus are among Swiggy’s early investors, while Goldman Sachs joined in 2021 when Swiggy was valued at approximately $5 billion. SoftBank entered the following year.

In FY24, Swiggy significantly reduced its losses by 43%, totalling ₹2,350 crore, thanks to robust growth in its food delivery and quick commerce sectors. Revenue from operations rose by 36% to ₹11,247 crore. The consumer-facing business—which includes food delivery, Instamart, and dining—achieved a gross order value (GOV) of ₹35,000 crore, supported by 14.3 million monthly transacting users.

Swiggy Instamart’s gross revenue for FY24 was ₹1,100 crore, compared to Blinkit’s ₹2,301 crore. Instamart’s GOV for the year reached ₹8,100 crore, while Blinkit’s was ₹12,469 crore.

The company plans to allocate the majority of its IPO proceeds to expand Instamart and strengthen its position against competitors such as Blinkit, Zepto, and BigBasket.

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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.