Swiggy, a popular food delivery platform in India, is set to launch its Initial Public Offering (IPO) between November 6 and November 8, 2024. The company plans to raise around ₹11,000 crore through the IPO and will use most of the proceeds for expanding its dark stores and brand marketing. However, the company also highlights its lack of profitability and negative cash flow as potential risks in its prospectus. CEO Sriharsh Majetty reassures that the business is not currently affected by the urban consumer slowdown, and is confident about the continued growth of the company.
Swiggy, a popular food delivery platform in India, has officially announced the opening of its initial public offering (IPO) on November 6th. With a fixed price band of Rs 371-390 apiece, the company is looking to raise a total of Rs 11,327.42 crore through the IPO. This includes a fresh share sale of Rs 4,499 crore and an offer-for-sale of up to 17,50,87,863 equity shares by its existing selling shareholders. The IPO has already generated interest from prominent investors and will offer investment opportunities for both institutional and retail investors.
Swiggy, one of India's top food and grocery delivery companies, is gearing up for its highly anticipated IPO, which is set to raise Rs 11,300 crore. Long-term investors, such as Accel, Elevation Capital, and Norwest Ventures, are expected to earn up to 35 times their initial investment on the shares being sold. The funds will be used to repay debt, expand their subsidiary Scootsy's dark store network, and invest in technology and marketing. This move will not only benefit shareholders but also pave the way for Swiggy's growth in the competitive Indian market.
Baron Capital's increase in stake has led to a jump in Swiggy's valuation, narrowing the gap with competitor Zomato. This news comes as a welcome update for Swiggy, which has been struggling to launch its IPO for some time now. However, despite the boost in valuation, Zomato's market cap remains far ahead, with its e-commerce platform Blinkit playing a key role in driving profits. In order to compete, Swiggy has had to make cost-cutting measures, including layoffs of 400 and 380 employees last year. Currently, the company has a total of 6000 employees.