Swiggy files papers for $1.2 bn initial public offering

Food and grocery delivery startup Swiggy has filed updated papers for a $1.2 billion (about ₹10,000 crore) initial public offering (IPO).

The fresh issue component would be of ₹3,750 crore while the offer for sale component would be to the tune of ₹6,500 crore.

The company is looking to raise the funds for investment in its unit Scootsy and grow its quick commerce business, the draft IPO papers showed. Swiggy will also use the funds to invest in technology and cloud infrastructure.

To be sure, Scootsy was acquired by the food delivery platform in 2018, helping it expand offerings beyond just food to include other categories like fashion and gifts.

Swiggy’s initial share sale is the biggest offering among new-age firms after Paytm’s ₹18,300 crore IPO in 2021.

Swiggy rival Zomato, which went public in 2021, had then seen a ₹9,375 crore listing.

India’s food delivery market, which may become a Rs2 trillion sector by 2030, currently comprises key players Swiggy and Zomato who together command about 90% of the business.

The company was last valued at $10.7 billion in a fund-raising round in January 2022.

Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will sell their shares and reduce their stake to make way for new ones, as people bet on the company’s long-term growth potential and also look for diversification away from Zomato.

Prosus, SoftBank, and Accel are key investors in Swiggy, with stakes of about 30%, 8% and 6%, respectively.

Other shareholders include DST Global, Qatar Investment Authority (QIA), Singapore’s GIC.

Kotak Mahindra Capital Co. Ltd, Jefferies India, Avendus Capital, J.P. Morgan India, BofA Securities India, Citigroup Global Markets India, ICICI Securities are managing the share sale.

Swiggy, which was set up in 2014, ties up with over 150,000 restaurants to deliver food, its website showed.

Swiggy’s IPO plan comes after NTPC Green Energy Ltd’s $1.2 billion filing last week.

India Inc. has raised about $9 billion through initial share sales in India this year, Bloomberg said.

With about 100 Indian companies going public in the April-to-June quarter, the South Asian nation has become the world’s busiest IPO market. However, most companies that launched initial share sales during the quarter raised under $50 million, data showed.

Bajaj Housing Finance Ltd, which raised $781 million this month, became the biggest IPO of the year so far.