Swiggy converts to public company ahead of initial public offering

On-demand convenience platform Swiggy has converted to a public company under the name Swiggy Limited from Swiggy Private Limited as it prepares for a public-market listing later this year, as per filings with the Ministry of Corporate Affairs.

In February, the Sriharsha Majety-led company changed its name to Swiggy Private Limited from Bundl Technologies, aiming to “establish greater proximity and identification of the company’s corporate name with the company’s core brand, ‘Swiggy’”, according to the resolution filed with the Registrar of Companies.

The food and grocery delivery firm is looking to raise as much as $1 billion from an initial public offering set to take place later this year. Its draft red herring prospectus (DRHP)—a public document listing an IPO-bound company’s objects of the offer—is expected to be filed over the next few months, according to various media reports. 

Swiggy joins the likes of FirstCry and Ola Electric to list on the bourses at a time when global markets continue to suffer amid larger macroeconomic uncertainty. New-age brands, however, are attempting to defy short and long-term imbalances.

Direct-to-consumer brand Honasa Consumer—the parent company to Mamaearth and Aqualogica among others—was listed in the public market in November.

Last month, one of Swiggy’s top investors Baron Capital marked up the valuation of its holdings in the food delivery company by 13%, taking it up to $12.1 billion. 

Another investor Invesco had marked down the valuation of the food delivery company to $5.5 billion in May 2023. However, it later revised it to $9.5 billion on October 31, 2023.

In the month of May 2023, Swiggy had announced that its food delivery business had turned profitable for the first time in March. This includes all corporate costs, excluding costs for employee stock ownership plan, Swiggy co-founder & CEO Sriharsha Majety wrote in a blogpost then.