Swiggy gets shareholder nod for IPO: Reports

Swiggy has received shareholder approval for its proposed $1.2 billion initial public offering (IPO), a filing with the Ministry of Corporate Affairs showed.

According to a report by The Economic Times, the Bengaluru-based on-demand food and grocery delivery platform—which competes closely with publicly listed rival Zomato—will raise Rs 3,750 crore in fresh capital.

Swiggy's investors and other shareholders intend to sell shares worth Rs 6,664 crore as part of the offer-for-sale. 

Queries sent to the company regarding the proposed listing remained unanswered at the time of publishing.

Prosus is a majority shareholder in Swiggy with 31.7% shareholding in the company, followed by SoftBank at 8% and Accel at 6%. According to Tracxn, the founders own 6.7% shares in the company.

Earlier in April, the foodtech company changed its status to a public company, Swiggy Limited, ahead of its IPO plans over the next few months. In March, Swiggy investor Baron Capital increased its valuation by nearly 13% to $12.1 billion, up from $10.7 billion when it last raised funds in 2022. 

The company has been eyeing profitability across multiple functions, adding that its food delivery business had turned profitable for the first time since its launch in 2014 in March 2023.

Over the last year, the business had shut down multiple verticals, including meat and premium grocery delivery, to focus on its mainstay of food delivery and quick commerce through Instamart. 

For comparison, Zomato, which debuted on Indian bourses in July 2021, reported a profit for three quarters for FY24, driven by an increase in Gross Order Value (GOV) for food delivery and its business-to-business segment, HyperPure.

The Gurugram-headquartered company is yet to come out with its annual earnings report for the financial year. Zomato also reported an increase in GOV for its quick commerce delivery vertical Blinkit in Q3 FY24.