The auto ancillary company Hindustan Composite acquired a minority stake in the online food delivery platform Swiggy. The company acquired a minority of the stake in the startup for Rs .17 crore. The development came after the famous Bollywood actor Amitabh Bach’s family office bought stakes in the food tech company. The board of Hindustan Composite acquired 150,000 equity shares with an investment of Rs 5.17 crore. Entrackr reported.
The company aims to finalize this deal for minor acquisition by the end of November this year. The company signed this agreement with the plan to secure both long-term and short-term benefits. The food delivery platform signed its Initial Public offering papers through a confidential route in May. The company is expected to raise around 4 million USD from a fresh allotment of equity shares and an offer for sale up to an aggregate amount of 800 million USD. The reports mentioned that the company will soon file for its draft Initial Public offering papers with SEBI. Swiggy has raised around 3.62 billion USD across multiple funding rounds since its inception, including $46.4 million secured during a series K funding round led by PR Venketrama Raja.
Swiggy provides several food and grocery services including discovering restaurants, ordering food, and making reservation options via its online platform. The platform also offers ordering services for groceries and other necessities. Before the IPO round, the firm announced its ESOP liquidity program of $65 million to enable over Rs 1,000 crore of ESOP liquidity and benefit around 3,200 employees. The company faces competition from other food tech companies such as Zomato, Blinkit, and Delivroo.
The food tech major Swiggy reported a revenue of Rs 5,476 crore in the first three-quarters of FY24. However, the net loss was around Rs 1,600 crore. The company aims to increase its market presence through this deal. The development came just when the food tech market saw increased investor interest. The data intelligence platform, tracxn mentioned that the company has around 7 institutional investors including Norwest Venture Partner, Prosus, and Tecent. The biggest rival of Swiggy, Zomato recently reported a revenue of s 4,206 crore in FY24 with a valuation of 2.3 billion USD. The profit was around Rs 253 crore in the same duration.
Conclusion:
Auto ancillary company Hindustan Composite acquired the minority stake in food tech major Swiggy for an amount of Rs 5.17 crore. The development came after Amitabh Bachan’s family office bought the minority stakes in the company. The food tech firm plans to increase its client base and expand its services in the market. The company competes with other food delivery platforms like Zomato and Blinkit. The board members at Hindustan Composite signed an agreement with Swiggy to acquire 150,000 equity shares worth Rs 5.17 crore. The company plans to finalize the deal by the end of November this year. This investment will enable Swiggy to scale its operations, enhance its platform, and strengthen its position in the food tech sector.
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