Swiggy Secures SEBI Nod for IPO, Share Sale Likely in November
Food and grocery delivery giant Swiggy has received approval from the Securities and Exchange Board of India (SEBI) for its public listing, following its confidential IPO filing earlier this year, sources familiar with the development have revealed. Swiggy is now set to file an updated draft red herring prospectus (DRHP) before beginning its roadshows for the anticipated share sale, according to one of the sources who spoke on condition of anonymity.
Swiggy’s IPO comes nearly three years after its closest competitor, Zomato, which is also backed by SoftBank, went public. Zomato’s stock has since quadrupled from its issue price of ₹76.
The Swiggy IPO is expected to consist of both an offer-for-sale (OFS) and a fresh issue of shares, with the company targeting a valuation of around $15 billion. However, the final valuation will only be determined after the roadshows are conducted.
Several of Swiggy’s early investors, including Prosus Ventures, Norwest Venture Partners, and Goldman Sachs, are expected to offload some of their stakes in the $1.25 billion IPO. SoftBank, which has profited from recent IPOs of Ola Electric, Firstcry, and Unicommerce, is expected to retain its stake, according to a previous report by Mint.
Norwest and Prosus are among Swiggy’s early backers, while Goldman Sachs joined in 2021 when Swiggy was valued at around $5 billion. SoftBank made its investment the following year.
Swiggy has made significant strides in reducing its losses, cutting them by 43% to ₹2,350 crore in FY24, thanks to rapid growth in its food delivery and quick commerce segments. Revenue from operations surged 36% to ₹11,247 crore. The company’s gross order value (GOV) from its consumer-facing businesses—including food delivery, Instamart, and dining—reached ₹35,000 crore, driven by 14.3 million monthly transacting users.
Swiggy Instamart, its quick commerce platform, reported gross revenue of ₹1,100 crore in FY24, compared to Blinkit’s ₹2,301 crore. Instamart’s GOV for the year stood at ₹8,100 crore, while Blinkit reported a GOV of ₹12,469 crore.
Swiggy plans to utilize the bulk of the proceeds from its upcoming IPO to expand Instamart, aiming to strengthen its position against competitors such as Blinkit, Zepto, and BigBasket.
