“Swiggy Secures SEBI Approval for $1.25 Billion IPO, Eyes Major Growth”

Bengaluru-based quick-commerce platform Swiggy has received approval from the Securities and Exchange Board of India (SEBI) for its proposed $1.25 billion Initial Public Offering (IPO). According to reports from the Economic Times, Swiggy filed draft papers for the IPO using the confidential route back in April.

Following this approval, Swiggy must submit an updated draft red herring prospectus (UDRHP) to SEBI. A 21-day window will be allowed for public feedback on the UDRHP before the IPO proceeds.

The IPO aims to raise approximately Rs 3,750 crore ($450 million) in fresh capital, along with an offer-for-sale (OFS) component valued at up to Rs 6,664 crore ($800 million). Industry insiders suggest that the size of the IPO could increase prior to its launch. Major investors, including Prosus—Swiggy’s largest shareholder with a 33% stake—and SoftBank, are expected to divest part of their holdings through the OFS. Other notable shareholders include Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC.

Regarding its financial performance, a recent Moneycontrol report highlighted that Swiggy’s revenue grew by 36% from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. Simultaneously, the company reduced its losses by 44%, dropping from Rs 4,179 crore to Rs 2,350 crore, largely due to improved expense management.

Despite this growth in its core business, Swiggy still trails its main competitor, Zomato, which reported revenues of Rs 12,114 crore and a profit of Rs 351 crore in FY24. While Swiggy closed the gap in food delivery, its Instamart grocery service continues to lag behind Blinkit, generating Rs 1,100 crore in revenue compared to Blinkit’s Rs 2,301 crore in the same period.