Swiggy has announced plans to potentially increase the fresh issue component of its upcoming IPO to Rs 5,000 crore. This decision will be put to a vote at an extraordinary general meeting (EGM) scheduled for October 3. The Bengaluru-based food and grocery delivery giant initially intended to raise Rs 3,750 crore in fresh capital, alongside a Rs 6,664 crore offer for sale. However, the final size of the IPO could differ from the amount for which it is seeking approval from its shareholders.
Swiggy has already made a confidential filing of its draft prospectus for the IPO with the Securities and Exchange Board of India (Sebi). The company’s board of directors had granted its approval for the public offering back in April.
The latest development was first reported by online news portal Entrackr. Last week, Swiggy disclosed its financials for the fiscal year ending March 31, 2024. The company reported a 36% growth in its operating revenue, reaching Rs 11,247 crore. Additionally, Swiggy managed to reduce its net loss to Rs 2,350 crore, marking a 44% decrease from the previous year.
Swiggy’s food delivery business faces competition from Gurgaon-based Zomato, while its quick commerce vertical, Instamart, competes with several players including Zomato-owned Blinkit, Nexus Venture Partners-backed Zepto, Flipkart Minutes, and Tata Digital’s BigBasket.
In addition to the upcoming IPO, Swiggy has witnessed several secondary transactions involving new investors joining its capitalisation table before the company goes public. Notably, the family office of Bollywood superstar Amitabh Bachchan has acquired a small stake in Swiggy by purchasing shares from the firm’s employees and early investors. Motilal Oswal Financial Services chairman Raamdeo Agrawal and automobile materials manufacturer Hindustan Composites have also acquired stakes in the company.