Get ready for the most anticipated event in the Indian startup scene! Swiggy, India’s leading food delivery startup, is gearing up to launch its Initial Public Offering (IPO). The IPO, set to open in November, will include a fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale (OFS) of 185,286,265 equity shares by existing shareholders.
Investors and Financial Performance
Big names like Accel, Alpha Wave, Elevation Capital, and Prosus are all set to sell a portion of their stake through the OFS, while Norwest and Tencent will join in. However, SoftBank, having seen profits in recent IPOs, will hold onto its stake.
Swiggy has made significant financial strides, slashing losses by 43% to ₹2,350 crore in FY24. Revenue from operations surged by 36% to ₹11,247 crore, driven by the rapid growth in food delivery and quick commerce segments. With 14.3 million monthly transacting users, the company’s consumer-facing business reported a gross order value (GOV) of ₹35,000 crore.
Instamart’s Rise and Expansion Plans
Swiggy Instamart, the company’s quick commerce division, generated a gross revenue of ₹1,100 crore in 2024, with a gross order value (GOV) of ₹8,100 crore. Although it lagged behind Blinkit in GOV, Swiggy intends to utilise most of the funds raised from its initial public offering (IPO) to enhance Instamart’s reach.
Swiggy’s ambitious plans include doubling its network of dark stores serving groceries and home essentials to over 1,000 in the next four years. The company will also invest in brand marketing, promotional expenses, technology, and cloud infrastructure.
Quick Commerce Landscape
The rapid delivery market is becoming increasingly competitive, with companies like Blinkit, Zepto, and BigBasket vying for a larger slice. Even major e-commerce companies like Flipkart are showing interest in the sector.
IPO Details
– IPO size: The company plans to raise ₹3,750 crore through a fresh issue of equity shares. Additionally, 185,286,265 equity shares will be offered for sale.
– Expected IPO opening: November
Book-running lead managers: Kotak Mahindra Capital Co., Citigroup Global Markets India, Jefferies India, and Avendus Capital are all reputable investment banking and financial services firms operating in the Indian market.
Conclusion
Swiggy’s IPO is set to be a game-changer in the Indian startup ecosystem. With its focus on expanding Instamart and improving financial performance, Swiggy is well-positioned to seize the growing demand for food delivery and quick commerce services. Get ready for an exciting journey with Swiggy!
