Swiggy Files Draft Papers For IPO, Contains Fresh Issue Of Rs 3,750 Crore

Swiggy Ltd. on Thursday filed its initial documents with market regulator SEBI to raise funds through an initial public offering. The IPO will include a fresh issue of Rs 3,750 crore and an offer for sale of 18.5 crore shares.

As part of the offer for sale component of the issue, the company's founders Sriharsha Majety will sell over 17 lakh shares, and Rahul Jaimini will sell over 11 lakh shares. The other selling shareholders include Accel, Prosus, Meituan, Norwest Venture Partners, Alpha Wave Ventures, Coatue, and Tencent Cloud.

This is the first version of Swiggy's updated draft red herring prospectus. A second, further updated version will be made available at a later stage to the Registrar of Companies and the exchanges before the final RHP is filed.

For FY24, Swiggy revealed a 36% jump in operating revenue to Rs 11,247.3 crore. To compare with its listed rival, Zomato posted a Rs 12,961 crore topline in FY24.

On the profitability front as well, Zomato is ahead, with a Rs 351 crore profit to boast of, while Swiggy is working hard to trim costs, with losses down 44% to Rs 2,256 crore in FY24.

As for the proceeds of the issue, Swiggy plans to use Rs 982 crore to invest in its subsidiary Scootsy and expand the dark store network for its quick commerce arm, Instamart.

It will invest Rs 586 crore in technology and cloud infrastructure and allocate Rs 929 crore for brand marketing and business promotion. Further, it will spend about Rs 137 crore to reduce debt.

Swiggy had received a nod for a potential Rs 10,414 crore IPO from its shareholders. That included raising Rs 6,664 crore via the offer-for-sale route and Rs 3,750 crore via a fresh issue of shares. Swiggy can also raise up to Rs 750 crore in a pre-IPO anchor round.

With the updated DRHP filing, it seems imminent that Swiggy is set to raise over Rs 10,000 crore with its listing.