Swiggy, the food-tech giant, has submitted its draft red herring prospectus (DRHP) with SEBI to launch a fresh INR 3,750 crore ($450 million) initial public offer (IPO). This includes a rights issue and a new offer for sale (OFS) of 18.53 crore shares. With shares purchased close to INR 350 per piece, this OFS is forecasted to be at INR 6,485 crore, taking the overall IPO value to approximately INR 10,000 crore ($1.2 billion).
Other notable investors, including Tencent, Accel, Norwest, Coatue, Elevation, and Alpha Wave, will sell the shares through OFS. Accel India IV (Mauritius) Ltd. will sell the remaining 1.05 crore shares, and Alpha Wave Ventures will sell 55.73 lakh shares.
Out of the total IPO fund, Swiggy is willing to invest INR 929.5 crore in marketing and promotional activities, technology and cloud infrastructure, inorganic growth through acquisitions, and general corporate purposes. Further, INR 982.4 crore has been earmarked for its subsidiary Scootsy, to build dark store networks and to handle leases and license expenses.
Scootsy Logistics will offer wholesalers and retailers services like warehouse management and order fulfillment. JP Morgan India, Kotak Mahindra Capital, and BofA Securities are joint book-running lead managers for the IPO. After SEBI approval, these shares are proposed to be listed on the NSE and BSE.
On the financial front, Swiggy’s net loss was further deepened by 7% to INR 605.7 crore in Q1 FY25, and revenues were up by 35%, touching INR 3,222.2 crore. Swiggy’s Instamart offering is growing significantly despite competition from Zomato and Blinkit. The DRHP describes Swiggy’s leadership team and strategic initiatives.
Swiggy is 30.95% owned by MIH India Food Holdings B.V., a subsidiary of Naspers. SVF II SONGBIRD (DE) LLC, a part of SoftBank Vision Fund II, owns 7.75%, and Accel owns 6.08%.
Others include Inspired Elite Investments Limited 3.88%, Norwest Venture Partners VII-A-Mauritius 3.41%, Elevation Capital V Limited 3.10%, Tencent Cloud Europe B.V. 3.64%, DST EuroAsia V B.V. 3.23%, and more.
Sriharsha Majety, Lakshmi Nandan Reddy Obul, and Rahul Jaimini (Co-founders) hold 6.23%, 1.76%, and 1.14%, respectively.
For more details on the Board of Directors, click here.
