The food and grocery delivery giant Swiggy has made headlines multiple times lately for its expansion plans. Now, in a positive development, reports claimed that Swiggy gets SEBI approval for its $1.25 billion Initial Public Offering (IPO). The Bengaluru-based company filed the draft papers for the IPO through the confidential filing route on April 30.

Swiggy will now be required to file an updated draft red herring prospectus (UDRHP) with SEBI, and before the IPO is launched, a 21-day window will be given to note public feedback on the UDRHP.

According to multiple reports, the IPO will raise Rs 3,750 crore ($450 million) in fresh capital, with an offer-for-sale (OFS) component of up to Rs 6,664 crore ($800 million). Several bankers and other experts have hinted that the IPO size could increase before its launch.

Swiggy gets SEBI approval
Image Source: d3.harvard.edu

Reports claim that some big stakeholders, including Prosus (the biggest shareholder in the company with a 33% stake), are expected to sell some of their equity through the Offer for Sale (OFS). Other big names who are ready to sell their holdings include Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC.

Swiggy vs Zomato

Earlier this month, Moneycontrol reported that Swiggy's revenue grew 36 per cent from Rs 8,265 crore in financial year 2023 to Rs 11,247 crore in FY24. Meanwhile, its losses dropped by 44% from Rs 4,179 crore to Rs 2,350 crore during the same period.

Despite the 36% growth, Swiggy still chased its rival Zomato during the financial year. Blinkit's parent company made a revenue of Rs 12,114 crore with a profit of Rs 351 crore, while Swiggy endured a loss of Rs 2,350 crore in FY24.

Project Next

Earlier this month, Swiggy announced its "Project Next" aimed at the career advancement of the delivery partners while expanding its restaurant chain. CEO Sriharsha Majety unveiled the new scheme through a LinkedIn post.

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