Foodtech giant Swiggy has secured approval from its shareholders for its initial public offering (IPO), as disclosed in regulatory filings. The company intends to raise up to INR 3,750 crore ($450 million) in fresh capital, alongside an offer-for-sale (OFS) component of up to INR 6,664 crore ($800 million), as per submissions to the Registrar of Companies.
Swiggy, yet to submit its IPO paperwork to India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), aims to raise approximately INR 750 crore from anchor investors in a pre-IPO round. Swiggy’s IPO is part of a cohort of emerging startups preparing to go public this year, joining companies like omnichannel retailer Firstcry, Ola Electric, and Awfis, among others.
The filing stated that, “the shareholders of the company have granted consent and approval for the creation, issuance, offering, allocation, and/or transfer of its equity shares, amounting to a total of INR 37,501 million through a fresh issue of equity shares. Furthermore, certain existing shareholders are authorized to offer for sale equity shares up to an aggregate amount of INR 66,640 million.”
Continue Exploring: Swiggy transitions to publicly traded company ahead of $1 Billion IPO
The special resolution was approved during an extraordinary general meeting (EGM) of Swiggy’s shareholders held on April 23.
Dutch-listed Prosus holds the largest stake in Swiggy at 33%, followed by SoftBank. Additional shareholders include Accel, Elevation Capital, Meituan, Norwest Venture Partners, Tencent, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC.
According to data platform Tracxn, the company’s cofounders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini hold stakes of 4%, 1.6%, and 1.2%, respectively. Jaimini transitioned from his operational role in 2020 to join another venture, Pesto Tech.
Continue Exploring: IPO-bound Swiggy appoints Titan’s Suparna Mitra as independent director
During the April 23 EGM, Majety and Reddy were appointed as executive directors of the company. Majety assumed the role of managing director and group CEO, while Reddy was designated as a whole-time director and head of innovation.
Queries directed to a Swiggy spokesperson remained unanswered.
In the fiscal year that ended in March 2023, Swiggy reported revenue from operations of INR 8,265 crore, a 45% jump from FY22, while its net loss also increased 15% to INR 4,179 crore.
On April 9, Snackfax reported that Invesco, the lead investor in Swiggy’s $700 million round in January 2022, raised the company’s valuation to $12.7 billion. Additionally, Baron Capital, another investor in Swiggy, increased the company’s fair value to $12.1 billion in its recent accounting cycle.
Continue Exploring: Invesco marks IPO-bound Swiggy’s valuation at $12.7 Billion, up 18% from last fundraise
