Swiggy is a food tech startup that provides several food or grocery services. The startup announced its plans to file for Initial Public Offering papers and raise Rs 5000 crore in a fresh issue as part of its initial public offerings. The company targeted to secure Rs 6,664 crore through an offer for sale. The firm is waiting for the board’s approval for the offer for sale in the first week of next month. The food tech major filed its red herring Prospectus for an IPO after becoming a public entity with SEBI to raise funds through its initial public offerings.
The startup offers an online platform to discover restaurants and get food deliveries after filling in user and payment details. Swiggy has secured over 3.62 billion USD since its inception across fifteen funding rounds, including $46.4 million raised in a series K funding round led by P R Venketrama Raja. The company has 57 institutional investors including Norwest Venture Partners, Tecent, and Naspers. The company planned to use the IPO proceeds to establish more offices while expanding its services in India. The investor Baron Capital valued Swiggy at $14.5 billion.
The board at the company has passed a special resolution to allow the allocation of equity shares worth Rs 5,000 crore, waiting for shareholder approval at a meeting on 3rd October. The Swiggy’s IPO round has been anticipated since the filing of draft papers in April. Entrackr mentioned. The firm has received shareholder approval to raise Rs 10,400 crore, including Rs 3,750 crore via fresh issue and Rs 6,664 crore through an offer for sale. The company plans to use these fresh proceeds for capital expenses, expand its services, and meet general corporate purposes.
The company reported a 36 percent YoY increase in its financial revenue to around Rs 11,247 crore in FY24. However, the losses saw a 44 percent decrease to Rs 2,350 crore in the same duration. Swiggy’s food business claims to have contributed over Rs 6,100 crore to its overall income, while the rest of Rs 1,000 crore in gross revenue comes from its quick commerce subsidiary Instamart. The IPO size of the food tech major may vary, the latest resolution is 1.3 times larger than the previously estimated Rs 3,750 crore.
Conclusion:
Swiggy provides an online platform for food and grocery deliveries. The company plans to increase its IPO size while eyeing Rs 5,000 crore in fresh shares. The food tech major filed approval for its Initial Public Offering from the Security Exchange Board of India in June. The food tech firm faces competition from other food and grocery delivery platforms including Zepto and Zomato. This platform enables customers to find groceries and other essentials according to their requirements. The company provides services including ordering food, discovering, restaurants, and making reservation options via its online platform. Swiggy faces competition from other food and grocery delivery platforms like Blinkit and Zepto.
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