Swiggy shareholders greenlight $1.25 billion IPO, eyes public debut amid intense competition

Swiggy IPO: Food delivery startup Swiggy has secured shareholder approval for a hefty $1.25 billion initial public offering (IPO), according to regulatory filings with India's Ministry of Corporate Affairs.

In a bid to bolster its financial standing, Swiggy aims to raise up to Rs 3,750 crore through the issuance of fresh shares, while existing shareholders are set to sell shares worth Rs 6,664 crore.

During an extraordinary general meeting convened on April 23, Swiggy's shareholders greenlit the IPO and appointed co-founders Sriharsha Majety and Nandan Reddy as executive directors. Majety assumes the role of managing director and group CEO.

Although the regulatory filing did not specify a precise date for the IPO, earlier reports from Reuters hinted at a potential public debut later this year. Swiggy's primary competitor in the food delivery arena, Zomato, undertook its IPO in 2021.

According to a Bernstein report from January, Zomato commanded approximately 54 per cent of the food delivery market's gross merchandise value in the first half of 2023, leaving Swiggy with the remaining share.

Swiggy boasts an impressive lineup of backers, including Prosus, Accel, SoftBank, and Invesco, among others. The company achieved a valuation of $10.7 billion following a $700 million fundraising round in 2022.

Recent reports on Swiggy's financial performance reveal a loss of $200 million alongside revenue totaling $1.02 billion for the nine-month period ending December 2023.

(With Reuters inputs.)