SUMMARY
- Swiggy has submitted a DRHP to SEBI to raise Rs 3,750 crore.
- The company intends to raise funds through the issuance of equity shares with value up to Rs 3,750 crore, and OFS of up to 185,286,265 equity shares.
- Out of the total OFS, 63.8% of the shares are expected to be sold by Prosus, along with other participating shareholders.
Foodtech major Swiggy has submitted a draft red herring prospectus (DRHP) to the Securities Exchange Board of India (SEBI) for its initial public offering (IPO).
The company intends to raise funds through the issuance of equity shares with value up to Rs 3,750 crore, and an offer for sale (OFS) of up to 185,286,265 equity shares. Out of the total OFS, 63.8% of the shares are expected to be sold by Prosus, along with other participating shareholders.
Investors participating in the offer for sale include Accel, Alpha Wave Ventures, Apoletto Asia, Ark India Food-Tech Private Investment Trust, Baron Emerging Markets Fund, Coatue PE Asia, DST Asia VI, DST EuroAsia V B.V., Elevation Capital, Goldman Sachs, Harmony Partners, HH BTPL Holdings, Inspired Elite Investments, Lynks Shareholders’ Trust, MIH India Food Holdings, Norwest Venture Partners, Tencent Cloud Europe, Time Capital Foodtech Advisors, West Street Global Growth Partners, and West Street Global Growth Partners Emp.
Elevation Capital is set to sell 73.96 lakh shares, Accel India will sell 1.05 crore shares, DST EuroAsia will sell 56 lakh shares, and Inspired Elite Investments will be selling 67 lakh shares.
The largest stockholder in the offering, Prosus, is set to sell 11.8 crore shares. Other selling stockholders include Tencent Cloud Europe, Norwest Venture Partners VII, Coatue PE Asia, and Alpha Wave Ventures.
On an individual level, Lakshmi Nandan Reddy Obul, P.R. Venketrama Raja, Rahul Jaimini, Samina Hamied, and Sriharsha Majety are among the selling shareholders.
Swiggy intends to utilize the primary proceeds for investments in its material subsidiary, Scootsy, the expansion of its dark store network for quick-commerce, and lease or license payments for dark stores. Moreover, the company plans to invest in technology and cloud infrastructure to enhance the capabilities and efficiency of its platform.
The company aims to finance its inorganic growth through acquisitions, aiming to solidify its market position and broaden its product offerings.
Kotak Mahindra, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, BofA Securities India, and ICICI Securities are the lead managers for the book running. Prosus is expected to hold the largest external stake with 30.95%, followed by SoftBank with 7.75% shares.
Swiggy has had a 36% increase in revenue to Rs 11,247 crore in FY24 and a 44% reduction in losses, reaching Rs 2,350 crore in the same period.
In Q1 FY25, Swiggy reported revenue from operations of Rs 3,222 crore, a 34.81% YoY increase from Rs 2,390 crore with losses rising only by 8.3% to Rs 611 crore from Rs 564 crore in Q1 FY24.
Swiggy’s Instamart earned a revenue of Rs 374 crore in Q1 FY25.
At present, Zomato leads the market with a market cap of around $29.5 billion, more than that of Swiggy, but Swiggy’s IPO is expected to heighten the competition between the two foodtech giants.
