Food tech giant Swiggy has secured shareholder approval to expand the primary issue size of its Initial Public Offering (IPO) from Rs 3,750 crore to Rs 5,000 crore. The decision was ratified during an Extraordinary General Meeting (EGM) held on October 3, allowing Swiggy to raise an additional Rs 1,250 crore, should the need for further funding arise. The offer for sale (OFS) component remains unchanged at Rs 6,664 crore.
A Highly Anticipated Market Debut
Swiggy’s public listing is expected to be one of the largest new-age IPOs in India. As per media reports from September 10, the Bengaluru-based company had been contemplating increasing the IPO size. With the newly approved primary issue, the total IPO size is projected to reach Rs 10,414 crore ($1.25 billion), or potentially Rs 11,664 crore ($1.4 billion) if further increased.
Intensifying Competition in Food Tech
The move to boost its IPO size comes as Swiggy faces stiff competition in the food tech space from profitable rivals like Zomato, Blinkit (owned by Zomato), Flipkart Minutes, and Tata BigBasket. Swiggy has been preparing for its public market debut for several months and is expected to list on the stock exchange later this year.
Strong FY24 Performance: Revenue Growth and Reduced Losses
Swiggy has reported significant revenue growth and a reduction in losses for the fiscal year 2024. The company’s revenue surged 36%, reaching Rs 11,247 crore, up from Rs 8,265 crore in FY23. Meanwhile, losses narrowed by 44%, falling from Rs 4,179 crore to Rs 2,350 crore, driven by improved cost management. This performance helped Swiggy close the gap with its arch-rival Zomato.
Q1 FY25: Growth at the Cost of Widening Losses
However, in the first quarter of FY25, Swiggy focused on aggressive growth, resulting in widened losses. The company’s losses increased by 8%, rising to Rs 611 crore in Q1 FY25, compared to Rs 564 crore in the corresponding quarter of the previous year. This was attributed to increasing operational expenses, according to Swiggy’s updated Draft Red Herring Prospectus (DRHP).
Q1 FY25 Financials: Revenue and Expenses Breakdown
In Q1 FY25, Swiggy’s total expenses surged 27% to Rs 3,908 crore, up from Rs 3,073 crore in the same period the previous fiscal year. Despite the rising expenses, Swiggy’s revenue from operations grew by 35%, reaching Rs 3,222.2 crore for the April-June period, compared to Rs 2,389.8 crore during the same quarter in FY24.
With the IPO now poised for further expansion, Swiggy’s upcoming public market debut is eagerly awaited by investors and industry insiders alike, setting the stage for one of the largest listings in India’s growing tech ecosystem.
