Food and grocery delivery firm Swiggy Thursday filed an updated prospectus for its proposed initial public offering (IPO) comprising a fresh issue of INR 3,750 crore and an offer for sale of 185.3 million shares.
The Bengaluru-based company had filed the prospectus confidentially with the Securities and Exchange Board of India (Sebi) in April for the public issue, and received the approval earlier this week.
In the OFS component, investors including Prosus, Accel, Norwest Venture Partners, Tencent, Elevation Capital and Alpha Wave Global will partially sell their stakes. Japanese investor SoftBank is not selling any shares in the IPO, according to Swiggy’s prospectus.
Prosus, the largest investor in Swiggy with a 30.95 percent stake or 690.5 million shares, is selling 118.2 million shares. The Dutch investment firm is the biggest seller in Swiggy’s IPO, followed by early backer Accel, which is selling 10.6 million shares.
Prosus had invested USD 1 billion in Swiggy over the years. Times Internet — the digital arm of The Times of India group, which publishes The Economic Times — is also participating in Swiggy’s OFS. Times Internet received stake in the company against the sale of its arm Dineout to Swiggy in 2022.
The company plans to deploy proceeds from the fresh issue towards expanding its quick commerce operations by opening more dark stores, or microwarehouses from where ten-minute deliveries are made. As of June 30, Swiggy’s quick commerce unit Instamart had 557 dark stores, up from 421 as of June 30, 2023.
ET reported on Wednesday that in the run up to Swiggy’s IPO, several celebrities in entertainment and sports were picking up the company’s shares from the unlisted market.
Swiggy last raised funding in January 2022 at a valuation of USD 10.7 billion. The company’s crossover investors such as Invesco and Baron Capital have since marked up its fair value in their books at around USD 15 billion.
Swiggy’s chief rival, Gurugram-based Zomato, went public in 2021, and currently has a market capitalisation of about USD 30 billion.
As per the latest financials reported in the prospectus, Swiggy posted a 34 percent year-on-year rise in operating revenue for the June quarter to INR 3,222 crore. Net losses however widened during the quarter to INR 611 crore, from INR 564 crore a year earlier as battle in the quick commerce space intensified with rivals Zomato-owned Blinkit and Nexus Venture Partners-backed Zepto deepening their presence.
Driven by strong growth in Instamart and out-of-home consumption business, Swiggy had on September 4 reported a 36 percent year-on-year increase in operating revenue to INR 11,247 crore for FY24. The company reduced its losses 44 percent to INR 2,350 crore last fiscal. Rival Zomato reported a net profit of INR 351 crore in FY24.
In the April-June period, Swiggy reported gross order value (GOV) of INR 6,808 crore for its food delivery business, and of INR 2,724 crore for Instamart, marking a year-on-year increase of 14 and 56 percent, respectively.
By comparison, Zomato’s GOV for food delivery and quick commerce during the June quarter was INR 9,264 crore and INR 4,923 crore, respectively.
