Swiggy Gets Shareholders' Approval to Raise ₹10,400+ Crore in IPO

Bengaluru-based food and grocery delivery behemoth Swiggy has received shareholders’ approval for an initial public offering to raise a ₹10,414 crore fund through issue of fresh equity shares and an offer for sale.

Swiggy said on Thursday it has received approval from its shareholders at an extraordinary general meeting (EGM) held on Tuesday for an initial public offering of $1.2 billion (₹10,414 crore), consisting of ₹3,750 crore of fresh issue and up to ₹6,664 crore as an offer-for-sale component, according to its RoC filings sourced through TheKredible.

Swiggy, which is yet to file its draft red herring prospectus with SEBI, will also raise a pre-IPO round of ₹750 crore from certain existing investors, the documents said. Recently, Entrackr reported that the company was offering shares at ₹350 a piece and at a valuation of ₹80,000 crore ($9.6 billion), which is roughly a 20% discount. The minimum investment in the round is ₹25 lakh.

The company’s last fundraiser was in January 2022, when it had raised $700 million in a Series K round, led by Invesco, at a valuation of $10.7 billion. Last month, investor Baron Capital marked up the fair value of its stake in Swiggy, to $87.2 million as of December 31, from $74.7 million in the previous quarter. This put Swiggy’s valuation at $12.1 billion, 13% higher than its last fundraiser.

More recently, another Swiggy investor, Invesco, also marked up the valuation of Swiggy by 19% to $12.7 billion, in a third-straight valuation markup by the US-based asset management company. Last year, Invesco had marked up its valuation to $8.5 billion as of October 31, from $7.8 billion as of July.

At the EGM, Swiggy’s shareholders also appointed its CEO Sriharsha Majety as an executive director, with the designation of managing director and group CEO, while its co-founder Nandan Reddy was appointed as a whole-time director and head of innovation.

It may be noted that approximately two months after Mallika Srinivasan, Chairman and Managing Director of TAFE, resigned, Suparna Mitra was appointed to the Swiggy board. Mitra's appointment to Swiggy's board coincided with the culinary technology startup's preparations for its initial public offering (IPO) with the filing of draft IPO documents, as per 5paisa.

In February, Swiggy had changed its registered name from Bundl Technologies to Swiggy and as per latest RoC filings, the company has converted itself into a public limited company. In FY23, Swiggy’s revenue from operations had grown about 45% to ₹8,264.6 crore, while losses increased 15% to ₹4,179 crore.

Both Invesco and Baron Capital were a part of Swiggy’s last fundraising round in 2022, and hold stakes of around 2% each. Swiggy’s latest valuation of $12.7 billion still lags considerably behind that of listed rival Zomato, which is at nearly $20 billion.