Swiggy, the food and grocery delivery giant, is gearing up for its highly anticipated initial public offering (IPO) in India. The company plans to raise ₹11,300 crore through this IPO, which will see share prices set between ₹371 and ₹390 per share. The IPO process is set to begin on November 6 and close on November 8, 2024, marking a significant milestone in Swiggy’s growth journey.
| Table of Contents |
|---|
| IPO Structure |
| Utilization of Funds |
| Company Background |
| Regulatory Process |
| Valuation Expectations |
| Conclusion |
| FAQ |
IPO Structure
The upcoming Swiggy IPO is structured into two main components:
| IPO Component | Amount |
|---|---|
| Fresh issue of shares | ₹4,500 crore |
| Offer for sale (OFS) | ₹6,800 crore |
Key shareholders participating in the OFS include Accel India IV, Apoletto Asia, Alpha Wave Ventures, DST EuroAsia, Elevation Capital, Inspired Elite Investments, MIH India Food Holdings, Norwest Venture Partners, and Tencent Cloud Europe.
Utilization of Funds
Swiggy plans to allocate the funds raised through the fresh issue towards several strategic initiatives:
- Debt repayment for its subsidiary Scootsy, totaling ₹137.41 crore.
- Expansion of Scootsy’s Dark Store network in the quick commerce sector, requiring ₹982.40 crore.
- Investment in technology and cloud infrastructure totaling ₹586.20 crore.
- Brand marketing and business promotion efforts funded at ₹929.50 crore.
- Funds directed towards inorganic growth and other corporate purposes.
Company Background
Founded in 2014, Swiggy has grown at an impressive pace, becoming a dominant player in the food delivery market. As of April 2023, the company was valued at around USD 13 billion, with an annual revenue reaching USD 1.09 billion by March 31, 2023. The workforce has also expanded significantly, employing over 4,700 individuals.
Regulatory Process
Swiggy has successfully navigated a confidential filing process with the SEBI, India’s market regulator. This included submitting a Draft Red Herring Prospectus (DRHP) and subsequent updates based on SEBI’s feedback and public comments. Earlier in April 2024, the company received shareholder approval for the IPO, initially aiming to raise ₹10,414 crore through the offer.
Valuation Expectations
The valuation target for Swiggy’s IPO is set between $12.5 billion and $13.5 billion, representing a slight increase from previous figures. The expected uptick in valuation is a reflection of its growth trajectory and market positioning.
Conclusion
The upcoming IPO is of crucial importance for Swiggy’s future growth, providing necessary funds to solidify its market position and further drive innovation. With the anticipated market response and investor interest, the IPO could have significant implications not only for Swiggy but also for the broader Indian startup ecosystem.
FAQ
Q: What is the expected timeline for Swiggy’s IPO?
A: The IPO process will begin on November 6 and close on November 8, 2024.
Q: How much funding does Swiggy aim to raise through its IPO?
A: Swiggy is targeting to raise ₹11,300 crore through the IPO.
Q: What are the major uses for the funds raised from the IPO?
A: Funds will be used for debt repayment, expansion of Dark Store networks, technology investments, brand marketing, and other corporate purposes.
Q: Who are the key shareholders involved in the Offer for Sale (OFS)?
A: Key shareholders include Accel India IV, Apoletto Asia, and Tencent Cloud Europe among others.
