Swiggy to raise Rs 3,750 Cr in fresh issue through public listing

Footech startup Swiggy has filed its IPO papers for a fresh issue of Rs 3,750 crore along with an offer for sale (OFS) of 18.52 crore shares from selling stockholders, according to its draft red herring prospectus (DRHP). 

Among the selling shareholders, Elevation Capital will sell 73.96 lakh shares, Accel India will sell 1.05 crore shares, DST EuroAsia will sell 56 lakh shares, while Inspired Elite Investments will sell 67 lakh shares. MIH India Food (Prosus), the largest selling stockholder in the offering, will sell 11.8 crore shares. Other selling stockholders include Tencent Cloud Europe, Norwest Venture Partners VII, Coatue PE Asia, and Alpha Wave Ventures. 

Notably, SoftBank is not selling shares in the company’s public issue. 

Kotak Mahindra Capital, Citigroup Global, Jeffries, and Avendus Capital will act as bookrunners for the company. 

Swiggy plans to use the fresh issue proceeds for investments in its material subsidiary, Scootsy, as well as for repaying the company‘s debt. It also plans to use the funds for expanding its dark store network, and investments in technology and brand-building initiatives.

According to Swiggy’s annual report, reviewed by YourStory, the company posted an operating revenue of Rs 11,247 crore in FY24, a 36% year-on-year rise from the Rs 8,264 crore it earned in FY23, according to the company’s annual report.

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Swiggy's IPO valuation chases Zomato's revenue multiple

The company is banking on an increase in order values, higher advertising revenues, and cost reduction methods to improve profitability as it gears for public listing. 

YourStory had reported earlier that the company was seeking a valuation between $15-17 billion for its IPO. It plans to focus on increasing its in-order values, improving upon advertising revenues, and cost reduction methods to improve profitability ahead of its public offering.