DBT Bureau
Bengaluru, 2 October 2024
Ahead of food delivery platform, Swiggy’s IPO (Initial Public Offering); its valuation has been raised by Invesco, a US-based asset management firm to $13.3 billion.
This is the fourth time in one year when Swiggy’s valuation has been raised by the US-based asset management firm.
As the company plans to go public, there are some important details from the company’s red herring prospectus.
Important Facts:
- Swiggy’s revenue grew by 36%, touching Rs 11,247 crore in FY24, up from Rs 8,265 crore reported in FY23.
- The company narrowed its losses by 44% to Rs 2,350 crore in FY24 from Rs 4,179 crore reported in the previous fiscal year (FY23).
- Most of the new growth is driven by quick commerce platform, Blinkit that competes with Swiggy’s Instamart, Zepto (backed by Nexus Venture Partners), and Tata Digital-owned BigBasket.
- Swiggy’s Blinkit reported a Gross Merchandise Value of Rs 4,923 crore in Q1 of FY25 (April-June of 2024).
- Swiggy’s Blinkit is considered as the largest player in the quick commerce market in India.
- The Bengaluru-headquartered company plans to raise Rs 3,750 crore ($448.56 million) through its IPO.
- Prosus is the largest stakeholder in Swiggy with 32% stake in the company.
- Prosus plans to offload substantial portion of its holding in this IPO.
- Other major investors include SoftBank, Accel, and Tencent, which are also planning to reduce their stakes.
- The proceeds from the IPO will be utilized to expand Swiggy’s quick commerce operations. The company also plans to use some funds for improving its technological infrastructure.
- Swiggy primarily competes with Zomato, which has already been listed in Indian exchanges.
- Zomato has already achieved profitability and the market cap has seen substantial rise in recent months on the back of a strong bull run.
