Softbank-backed Indian food delivery giant Swiggy is set to increase the size of its initial public offering size (IPO) by raising additional capital through fresh issue of shares.
Swiggy’s board has passed a special resolution to issue equity shares worth up to $602 million (Rs 5,000 crore), subject to shareholder approval at a meeting (EGM) scheduled for October 3, Entrackr reported on Tuesday citing the company’s internal documents.
The amount is $150 million higher than Swiggy’s initial plan to raise around $450 million (Rs 3,750 crore) through fresh issue of shares and Rs Rs 6,664 crore through an offer for sale (OFS). Swiggy had filed its draft IPO papers via the confidential route with the Securities and Exchange Board of India (Sebi) in April to raise Rs 10,400 crore.
According to an earlier report in Reuters, the company is targeting a valuation of around $15 billion for its upcoming stock market offering. Its last funding round, led by Invesco in 2022, valued it at $10.7 billion. The company also secured strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites recently.
Swiggy is reportedly planning to list on the bourses by the end of this year. The deal would make it one of the biggest Indian initial public offerings (IPOs) this year.
Swiggy competes with the likes of Zepto, and Zomato-backed Blinkit in the fast-growing quick e-commerce space in India. Zepto has raised about $1 billion in funding in 2024 alone from investors including General Catalyst, Dragon Fund, Epiq Capital, StepStone, Lightspeed, DST, and Contrary. It was valued at $5 billion in the last funding round.
Meanwhile, Swiggy’s revenue grew 36% from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. Moreover, its losses were down 44% to Rs 2,350 crore in the same period.
