Swiggy is planning to seek shareholder approval for a substantial increase in the fresh issue component of its forthcoming IPO, reports MoneyControl. The company is aiming to raise up to ₹5,000 crore (approximately $602 million) through this fresh issue, up from its earlier target of ₹3,750 crore. This adjustment is set to be discussed at an extraordinary general meeting (EGM) scheduled for October 3.
In the lead-up to its IPO, Swiggy had attracted significant interest from new investors through secondary transactions. Noteworthy transactions include a stake acquisition by the family office of Bollywood icon Amitabh Bachchan and investments from prominent figures such as Motilal Oswal Financial Services chairman Raamdeo Agrawal and Hindustan Composites.
This development comes at a time when Swiggy operates in a highly competitive market, both in its core food delivery segment and its quick commerce division, and needs to have a sizeable cash chest if it were to take its fiercest competitor, the publicly listed Zomato. Meanwhile, Swiggy’s quick commerce arm, Instamart, faces competition from a range of rivals, including Zomato-owned Blinkit, Zepto (backed by Nexus Venture Partners), Flipkart Minutes, and Tata Digital’s BigBasket. Zepto recently raised back-to-back large rounds, with its fundraise nearing $1Bn in this year alone.
Swiggy’s IPO plans have undergone a notable transformation since their initial announcement. Originally, the company intended to raise ₹3,750 crore via a fresh issue, complemented by an offer for sale (OFS) of ₹6,664 crore. However, the latest proposal to increase the fresh issue component reflects a strategic pivot aimed at strengthening its financial position and optimizing capital allocation. The request for increased capital will be presented to shareholders at the upcoming EGM. The final structure of the IPO, including both the fresh issue and the OFS, will ultimately depend on shareholder approval and market conditions. Swiggy has already submitted a confidential draft prospectus to the Securities and Exchange Board of India (SEBI).
Swiggy’s recent financial disclosures provide insight into its operational and financial health. For the fiscal year ending March 31, 2024, the company reported a 36% increase in operating revenue, reaching ₹11,247 crore. Despite this positive revenue trajectory, Swiggy posted a net loss of ₹2,350 crore, though this figure represents a 44% reduction in losses compared to the previous fiscal year. Going forward, its Instamart plans to expand to more cities deepening its presence in tier 2 and 3 markets, as well as grow its network of dark stores across existing and new cities alike.
