Swiggy Files Updated DRHP with SEBI for Rs.10,000 Crore IPO

Swiggy, the food tech giant, filed its first updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) yesterday, on September 26, 2024. The public offering includes a fresh issue of Rs.3,750 crore and an offer for sale (OFS) of 18.53 crore shares. Major investors, including Accel, Alpha Wave Ventures, Coatue, Elevation Capital, Tencent, and Norwest, will sell part of their holdings in the company.

OFS & Market Valuation

The OFS, assuming recent share prices of Rs.350, is expected to generate around Rs.6,485 crore, bringing the swiggy IPO’s total value to approximately Rs.10,000 crore. Swiggy, last valued at $10.7 billion in January 2022, is expected to go public with a valuation of $10-13 billion, as per market analysts.

Growth & Financials

Swiggy’s financial growth continues to be strong. In Q1FY25, its revenue rose 35% to Rs.3,222.2 crore, while its net losses widened to Rs.605.7 crore. In FY24, Swiggy’s consolidated operating revenue grew by 36% year-on-year to Rs.11,247.4 crore, with net losses shrinking by 46% to Rs.2,256 crore.

Instamart & Expansion

Instamart, Swiggy’s quick commerce segment, is expanding rapidly, with 605 active dark stores across 43 cities in India as of September 2024. In FY24, Instamart’s gross order value (GoV) was Rs.8,068.5 crore, a 57.6% increase year-on-year. In Q1FY25, its GoV reached Rs.2,724 crore, representing an annualized GoV of $1.3 billion.

Conclusion: With its updated DRHP filed, Swiggy seems to be on track to become the next Indian unicorn to go public. The company plans to use the swiggy IPO proceeds to expand its dark store network, invest in technology, and fund inorganic growth. As it competes with Zomato, the market eagerly awaits Swiggy’s debut on the bourses.

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.