Wed Oct 30 19:02:52 UTC 2024: ## Swiggy Files IPO, Aiming for $1.13 Billion Valuation

**Bengaluru, India** – Online food delivery platform Swiggy has filed its Initial Public Offering (IPO) prospectus with the Registrar of Companies (RoC) on October 28th. The public subscription for the IPO will open on November 6th and close on November 8th. Anchor investor subscriptions will open on November 5th.

This IPO, expected to be the second-largest of the year after Hyundai Motor India’s record Rs. 27,870 crore IPO, will see both new shares issued and existing shareholders selling their shares through an offer for sale.

Swiggy aims to raise Rs. 3,750 crore through the IPO, with Rs. 4,499 crore worth of new shares being issued. The company has increased the offer for sale portion by decreasing the initial plan to issue Rs. 3,750 crore in new shares. The IPO’s price band is yet to be finalized but is expected to be announced shortly.

Swiggy’s target valuation is $1.13 billion, approximately half of Zomato’s current valuation of $2.67 billion.

**Shareholding and IPO Funds Allocation**

The largest shareholder in Swiggy is MIH India Food Holdings, a Prosus company, with a 30.93% stake. Other major shareholders include SoftBank Group’s SVF II SONGBIRD (DE) LLC (7.75%), Essel India (4.71%), and Tencent Cloud (3.64%). Swiggy’s MD and Group CEO, Sriharsha Majety, holds a 5.36% stake, while co-founder and full-time director, Head of Innovation, Lakshmi Nandan Reddy Obul, owns 1.75%.

The proceeds from the offer for sale will go to the selling shareholders. The funds raised through the new shares will be allocated as follows: Rs. 1,343.5 crore to subsidiary Scootsy, Rs. 703.4 crore for technology and cloud infrastructure investment, Rs. 1,115.3 crore for brand marketing and business promotion, and the remaining for inorganic growth and general corporate purposes.

**Financial Performance**

Swiggy’s financial performance has seen improvements, with its operating revenue growing 36% to Rs. 11,247.4 crore in FY24, while its loss reduced from Rs. 4,179.3 crore to Rs. 2,350.2 crore. In the June quarter of FY25, the company’s revenue rose 35% to Rs. 3,222.2 crore, although its loss increased to Rs. 611 crore from Rs. 564 crore year-on-year.

**Other News**

Meanwhile, SEBI has approved the IPOs of NTPC Green and Avanse Financial.

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