Food-tech unicorn Swiggy has filed its updated draft red herring prospectus (DRHP) with the SEBI for an initial public offering (IPO) to raise Rs 3,750 crore through a fresh issue. The issue will also have an offer-for-sale (OFS) component of up to 185.3 million shares.
The Bengaluru-based startup, which began as a restaurant aggregator in 2014, will be the second company to go public in the food-tech space after Zomato.
The issue will see 10 of its existing shareholders, including Accel, Apoletto Asia, Elevation Capital, Norwest Venture Partners and Chinese internet major Tencent’s Netherlands-based arm Tencent Cloud Europe, selling part of their stakes in the company.
Netherlands-based MIH India Food Holdings plans to sell up to 118 million shares, venture capital firm Accel may sell up to 10.6 million shares, while Elevation Capital plans to sell up to 7.4 million shares in the upcoming IPO.
Among the seven book-running lead managers for the IPO are Kotak Mahindra Capital, Citigroup Global Markets India, Jefferies India, Avendus Capital, JP Morgan India, JP Morgan India, BofA Securities India and ICICI Securities.
With the capital raised, Swiggy plans to use the biggest chunk, about Rs 982 crore, for expanding the dark store network for its quick commerce arm Instamart. It will also use around Rs 930 crore for marketing and promotional expenses, while the rest will be used for investment in technology and cloud infrastructure, debt repayment and potential acquisitions.
The offer document further shows that Swiggy reported revenue from operations of Rs 3,222 crore in the quarter ended June, which is about 35% higher than the year-ago period when it had generated Rs 2,389 crore in sales. However, losses stood at Rs 611 crore in the June quarter, wider than Rs 564 crore a year ago.
During the June quarter, its gross order value stood at Rs 10,189 crore, higher than the Rs 8,277 crore a year ago. Its contribution margin also improved to 3.65% from 2.39%. Swiggy’s platform recorded 46.84 million annual transacting users in FY24, compared to 43.34 transacting users in the previous year.
For full-year FY24, revenue from operations stood at Rs 11,247 crore, compared to Rs 8,264 crore in the preceding year, while losses improved to Rs 2,350 crore in FY24 from Rs 4,179 crore a year ago. The company’s net worth stands at Rs 7,444 crore as of June end.
Swiggy may also issue shares worth Rs 750 crore via private placement in a pre-IPO rounds, before filing the red herring prospectus with the RoC. If the pre-IPO placement is undertaken, the fresh issue size will be reduced to the extent of the placement issued.
