Swiggy IPO likely in November, looking to raise Rs 11,000 crore; Rahul Dravid, Karan Johar bite into pre-IPO pie

• Co. looking at fresh issue worth Rs 9,000 crore
• Pre-IPO shares lapped up by Karan Johar, Amitabh Bachchan, Rahul Dravid
• SEBI greenlights company's IPO in November this year

Food and grocery delivery behemoth Swiggy is all set to launch its IPO in November this year. The firm is likely to raise around Rs 11,000 crore, which will include a fresh issue of Rs 5,000 crore, via the confidential filing route. In contrast, its counterpart Zomato, which came out with its IPO in 2021, was looking to raise Rs 9,375 crore, which included a fresh issue worth Rs 9,000 crore, and an OFS (offer for sale) worth Rs 375 crore.

However, the company's pre-IPO shares have already drawn the attention of multiple prominent investors, the likes of which include Bollywood biggies like Amitabh Bachchan, Madhuri Dixit, Rahul Dravid, Karan Johar, tennis star Rohan Bopanna and cricketing legends like Rahul Dravid and Zaheer Khan. Even market veteran Ramdeo Agrawal, who heads Motilal Oswal Group, has also acquired a stake in the company.

First introduced by market regulator in 2022, this method allows companies to keep their offer document, or DRHP (draft red herring prospectus) out of public eye, till the time they strengthen their IPO plans. However, the company will have to put out its updated draft red herring prospectus, or UDRHP for public review, allowing 21 days for them to offer feedback, before proceeding with their IPO. If it goes through, Swiggy will become the first company to go public via this route. Previously, Tata Sky had planned to go public via this way, but eventually ended up dropping its plans.

About Swiggy

Currently valued at a staggering $9.8 billion, the company, which enjoys a duopoly with Zomato in the food delivery space, Swiggy has, till date, seen 16 funding rounds, where it has raised a total of $3.62 billion from 57 institutional and 9 angel investors. Per the company's annual reports, the company's net sales during FY2023 was Rs 46,533 million, which rose to Rs 63,723 million in 2024. Recently, the company also saw an uptick in its average monthly transacting users of 32%(from 1.1 million in FY22 to 4.2 million in FY24), and average order value of 16% (from Rs 394 in FY22 to Rs 460 in FY24).

The company's quick delivery segment, Instamart, also managed to earn more revenue than Blinkit, which is operated by Zomato. In FY23, Instamart earned Rs 870 crore, while Blinkit raked in Rs 664 crore during the same period. However, estimates suggest that Blinkit is set to earn more than Instamart in FY24.

While the company's food delivery segment turned profitable in 2023, the company overall continued to remain in losses. Swiggy incurred a loss of Rs 35,247 million in FY2023, which narrowed down to Rs 17,854 million in FY2024.

See also: