As of August 2023, Swiggy, backed by investors such as Prosus, SoftBank, and Accel, is valued at $9.3 billion.
Online food ordering and delivery company Swiggy has reportedly got a nod from the Securities and Exchange Board of India (SEBI) to take forward its plan to launch an initial public offering (IPO) in November. As per a report in Moneycontrol, the firm submitted its offer document on April 30 this year through the confidential pre-filing route, which means its details will be kept under wraps for now.
For those caught unaware, the concept of confidential filings was introduced by SEBI in November 2022, and as part of it, the issuer company can keep its pre-filing route completely confidential until its IPO plan is firm. In India, direct-to-home platform, Tata Play (formerly Tata Sky) became the first company to file confidential papers with SEBI for an IPO, but later withdrew its plans for listing.
Coming back to Swiggy, the company is headquartered in Bangalore and operates in more than 580 cities. Founded in 2004, it is backed by investors such as Prosus, SoftBank, and Accel. As of August 2023, it is valued at $9.3 billion. With an annual revenue of $1.09 billion as on March 31, 2023, the company has more than 4,700 employees.
Interestingly, as per a report in Business Standard, Swiggy has plans to raise Rs 11,000 crore with a fresh issue worth Rs 5,000 crore. Meanwhile, as per other sources, Swiggy is looking at raising up to Rs 3,750 crore funds through fresh equity shares, while keeping the OFS component of up to Rs 6,664 crore.
The company is looking to shore up about Rs 750 crore from anchor investors in a pre-IPO round, they had added.
Coming to its IPO filing, the company needs to put an updated draft red herring prospectus (UDRHP) before the public for at least 21 days. During that time, the public can provide feedback on the offer document, and only after that, Swiggy can further proceed with its IPO. If all goes well, Swiggy will become the second food delivery firm after Zomata to be listed on the stock exchanges, and the first to go public via the confidential filing route.
It is believed that several high-profile people have stakes in Swiggy amid the run-up to its public issue. It was reported in August that Amitabh Bachchan has picked up a small stake in the food ordering platform, and so did Motilal Oswal Financial Services chairman Raamdeo Agrawal. Almost a week ago, Modern Insulators too bought 1,38,800 shares in Swiggy, representing its 0.007% stake at Rs 360 per share. With the buying of shares, the transaction value stood at Rs 4.99 crore. Not just that, Madhuri Dixit and Innov8 founder Ritesh Malik too have reportedly invested in Swiggy.
