Swiggy gets investor nod for $1.2 billion IPO

MUMBAI: Food delivery major Swiggy has received the go ahead from its shareholders to float a $1.2-billion IPO, regulatory filings sourced from market intelligence platform Tofler showed. The Bengaluru-based firm, which rivals listed peer Zomato, aims to raise up to Rs 3,750 ($450 million) crore by issuing fresh equity shares and up to Rs 6,664 crore ($800 million) by way of an offer for sale component.
The company also plans to raise about Rs 750 crore from anchor investors in a pre-IPO round. Swiggy did not respond to queries. Swiggy's planned public listing comes amid a market rebound for new age IPOs with a batch of internet companies like Ola Electric and MobiKwik having already filed draft IPO papers with markets regulator Sebi and estimated to get listed on the bourses in the second half of the year.
Analysts expect 15-20 startup unicorns to launch IPOs in the next 12-24 months. Swiggy's rival Zomato had a stellar debut on the bourses in July 2021, a year which also saw a clutch of other big startups like Nykaa and Paytm go public. Zomato leads the food delivery market with a 57% share while Swiggy holds 43%, a study conducted by JM Financial earlier this year showed. Dutch tech investor Prosus is the largest shareholder in Swiggy with close to 32% stake, data sourced from market research firm Tracxn showed. SoftBank, Accel and Elevation Capital are other investors in the company.
Co-founder and CEO Sriharsha Majety holds a 3.9% stake in the firm.