Swiggy, the food delivery and quick commerce giant, is gearing up to raise approximately $600 million through a fresh issue as part of its initial public offering (IPO), according to internal documents. This is a significant increase from the previously reported $450 million. When combined with a planned $800 million offer for sale (OFS), the total potential fundraise could reach around $1.4 billion.
The Bengaluru-based company’s board has passed a special resolution for the equity share issuance, which is subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for October 3. The final size of the IPO will be determined at the EGM.
Swiggy, backed by Prosus, is expected to file its draft red herring prospectus (DRHP) with Sebi soon. The company has recently secured strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites, while investor Baron Capital has valued the firm at $14.5 billion. Swiggy did not respond to the queries until press time.
In FY24, Swiggy reported a 36% year-on-year revenue growth, reaching Rs 11,247 crore, while reducing its losses by 44%, down to Rs 2,350 crore during the same period.
The increase in the IPO size comes amid growing competition in the quick commerce space. Rivals such as Zomato and Blinkit have enhanced their profitability and market capitalization, while newer entrants like Zepto have secured significant funding. Flipkart, owned by Walmart, has also ventured into the instant delivery market with Flipkart Minutes.
Swiggy’s quick commerce arm, Instamart, has expanded its operations, now serving 43 cities across India. In the past two months, it has added 11 new cities, including Rajkot, Thrissur, Mangalore, Kanpur, Udaipur, Warangal, Salem, Amritsar, Bhopal, Varanasi, and Ludhiana, bringing quick commerce services to many of these locations for the first time, the company said.
Amitesh Jha, CEO of Swiggy Instamart, said, “The enthusiastic demand from smaller towns and cities has been incredibly encouraging. Our expansion into these new locations marks a significant milestone, allowing even more people to experience the ease of having thousands of products delivered in just 10 minutes.”
Instamart’s growth strategy focuses on increasing its store network in major metros while expanding into tier-II and tier-III markets. The platform has partnered with local brands and vendors to offer region-specific products.
Looking ahead, Swiggy Instamart plans to further expand its dark store network and diversify its product assortment to meet rising demand, particularly during the festive season.